I’ve never had any problems with WASD. Just other stuff, like the camera you mentioned.
That can be done yes. Diablo 3 does this with great effect since you always have an isometric view.
Torchlight renders outlines of characters that are obscured by scenery. Diablo 3 tends to avoid occluding your view in the first place by various means, and simply removes foreground scenery when it does. LOTRO sounds like it has a simply unforgiveable control/camera scheme, and any MMO where they won’t put the effort into fixing that sort of thing will soon be a dead MMO.
Yeah, any problems like that should be fixed immediately. It’s probably a concept/design problem tho