First of all, during the main gameplay, you have no mouse cursor which practically all Dungeon Crawlers (DC) have, so free mouselook allows you to interact with items. switches etc. just by looking at them and pressing the use key. So I think this is a very good way of doing things. Alternatives with locked mosuelook would be some system that checks if there are any interactable objects in front of the player, and also auto-picking up items on the ground (which for an RPG, is not always desired).
Next issue is combat. DCs commonly have real-time, semi-turn-based combat, meaning that (melee) combat is fairly slow with long cooldowns between attacks so in effect both the party members and the enemies can onyl take about one attack per "turn", which is a span of time running in the background, but still in real-time. A sub-class of this is seen in the earlier Might & Magic games where each action by the player, be it moving one step or firing arrows, triggers a turn advancement, so all enemies react to your actions tit-for-tat. The other major way of resolving combat is by entering a special combat screen or "arena" when melee combat is initiated, where you will see a generalized view of the environment and the enemies before you in set positions, possibly moving on a grid. Examples are Operencia mentioned above and Ambermoon for the Amiga (new new Bard's Tale game features this as well, I believe). The downside to this system is that ranged combat, if possible at all, is disconnected from melee combat.
My initial ideas are these:
Have the free-look turning system
Real-time combat where you can, curtesy of the free mouselook, just aim at the enemies you want to attack (remember that enemies often appear in groups of up to four per cell). If the classic system of two party members in front, two in the back is used, you could make the front row attack with the left mouse button and the back row with the right mouse button.
I'm not sure how equipping items and the user interfact as a whole would work without dabbling in the black box that is zScript menus

Thoughts & comments are welcome!