If the game feels easier purely because of the controls then I'd say it's an improvement. I would say that against the more skilled opponents the advantages of dashing more frequently are less noticeable.
Mostly I find that after having used the previous system so much it's hard to adjust to taking single steps with taps, it's not something we're used to doing at all.
These two points are key for me.
First, easier opponents being easier helps new players get acquainted to the game. Harder opponents staying relatively the same doesn't blunt the overall challenge. Basically, new players will enjoy quicker progress immediately, perhaps not getting turned off quickly by what most agree is a different/quirky/unusual (and great!) combat system.
Second, I'm ok with the new system. I *think* I'm going to like it more. But the biggest hurdle I noticed is the one you mention: Reprogramming my brain to take single steps by tapping. When I force myself to do this, I find my footwork improves dramatically. It's likely just an issue of needing time to adjust. For reference, I'm probably an average player. I can roll through the novice area fairly well depending on my concentration, with a couple still able to give me trouble. And I'm up to the last 2-3 in expert but haven't beaten them yet. And I was already dashing constantly. This change just makes it far easier, and less of a chore.
Ultimately, I think letting players choose the setup is the best choice. Whatever makes more players feel more comfortable while playing. Not everyones' brain is going to work the same way.
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Footwork is represented pretty well in this game. It's obviously abstracted by being a game, but it's still well represented. This change in controls really brings that point home for me.
When you swing in relation to when you step is pivotal. And that is very alien in a computer game. It's rarely (never?) been done within actual physics in a game. So we players aren't used to it. (There's obviously timing in many games, but it's generally in relation to canned animations that the player can easily map mentally). I would suggest considering pushing the importance of the idea of "footwork" for new players. Stepping, dashing, swinging, stepping into swings, staying centered for defense, all while being subjected to physics are all key elements that video game players aren't used to thinking about much. But it's all here in SG, and when used, make a world of difference in the experience.
Perhaps making a video tutorial showcasing just the importance of footwork would be helpful for new players. How a swing is different depending on your movement, or even lack thereof. How stepping into a swing is different from a stationary swing, which is different from stepping back while swinging. How remaining stationary while defending is different from moving into an enemies swing while defending, which is different from moving out of an enemies swing. Etc etc...
Show new players that even though there are no "moves" with canned animations and bound key presses, there are indeed basic moves and stances, and those are the basis to build more sophisticated tactics out of.