Everything in 1.0 had inertia. It really made you feel like a living thing rather than just a static doll of an avatar.
The attacks, the movement, the cutscenes, everything really was enhanced over the inertia that the physics had.

I miss it, and at times I miss my slow powerful feeling attacks, but at the same time I know we'll probably never see it back again. The engine was completely rebuilt once, I doubt they'd decide it's time to go back.