It's a lot better than it was last time I played. You can perform aimed attacks, and there seems to be a larger variety of thins to kill. Really, just being able to aim attacks makes it so much better. Targeting hands and feet is pretty devastating, since you can either mangle them with blunt damage, or sever them with slashing. Also makes it much easier to finish off unconscious opponents, since you get a guaranteed hit, and you can target the head. That said, I'm not that great at the game. I also haven't played it a ton. It's something I play once every few months. I had stolen a sword and shield with my last character, but lost them somehow (knocked out of my hands, maybe?), so I had to slay a crossbow wielding warlord and her hammer wielding henchman with a copper dagger. I won, but only through sneaking, and hand slicing. But I was mad about losing my weapons, so I let myself die to some bogeymen (they assault you at night, if you are by yourself). Yeah. It's fun.
The DF combat system is the best/funniest thing ever, that's for sure. I'll have to start a new fortress soon, haven't played in a while.
Speaking of funny combat... I was a pikeman, and I had three pikeman companions. Didn't do that on purpose, but it was amusing. Is. That character isn't dead. Yet.