Devs stated they plan a "baldur's gate"-like battle system : read continuous turns, with pausing whenever you want. It "seems" real-time, when in fact it's turn based.
If it is like Baldur's gate or better Icewind dale 2 (almost the same difference) that would be great for me but I think it would be wise to consider a Mechwarrior 3D zoom in zoom out style. It would appeal to the younger consumers and make Elemental unique as it allows 2D or zoom in and turn it into 3D. Taking control of a unit in battle in a first person mode would really appeal to the Hack and Slash consumer while still retaining the old school strategy turn based consumer as one can choose not just play old school way.
One thing I would real like to have is a screen that logs the combat actions realtime (damage, attack roll, Critical hits, etc).
Also one of the things that I did not like about the tactical screen in Age of Wonders was that the trees, rocks water, mountains, etc did not seem to matter in much other than range attack. If one tried to use a unit that could hide itself or use invisibility magic it seem to not work. Trying to use the high ground to get the advantage only seemed to work in town battles but not in other parts of the map.
It would be nice to be able to have the same up close and personal feel for RPing, specific quests, dungeons, Merchants, etc. as well.
For what its worth the tactical battle screen is what got me hooked on Age of Wonders. I just loved having a completely different screen and feel to my battles compared to what I had for the rest of the game. Being able to see my favorite units up close and personal and in action also made the game much more enjoyable. I enjoyed it so much that many times if the battle was very fun for me I would replay it a few times using different tactics. I spend many hours at times with just one battle trying to challenge myself and the limitations of the units I choose.