Yes, I liked KQ8 and would have been fine with the continuation of the series as action-adventure. It would have been better as a truer hybrid, with a little more puzzle-solving gameplay relative to combat.
Third-person games in real-time 3D were still young back then, there was a lot of experimentation, eg. in gameplay conventions and how the user controlled character and camera, etc. KQ8 had some nice innovations in this regard, but also had some flaws. I believe Sierra, if they had continued to thrive, could have contributed to the development of the genre and made subsequent games better, perhaps becoming comfortable enough to bring back some of the earlier KQ "feel" and "lightness" to subsequent games.
(Incidentally, I feel the same way about Indiana Jones -- I'm glad LA transitioned that series to action-adventure and wish they would continue it.)
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