Okay. Hear me out. a KH-style combat system, but in VR.
It would take some doing to get it feeling good, but I think it can work.
>Walk with joystick
>Run with joystick+arm swing
>Dash by thrusting both arms back, stun-locking enemies
>Sword swings only register if you commit to the swing, waggling does nothing
>Different combos and combo finishers with different sword swing directions
>Sword swings keep you floating in mid-air so you can do air combos
>Select magic with face-buttons. Point and shoot with your sword

This is, of course, just an arm-chair dev idea.