Guys you seems to really overestimate your abilities, I mean in terms of graphics, you can just go for box-like houses like it was in original. Overdetailing stuff in such a game will make it harder to spot points of interest. People will tolerate simplicity as long as you have some sense of art direction. I suggest you to look at post-impressionist art, especially Cézanne, that will give you the idea on how to make simple things look beautiful. Basically set the limit for your meshes and textures per map or object to not get off the track, that will help you to keep things simple and save a lot of time. Regarding to the NPCs and creatures I'd recommend to look at the games of PS1 era. In terms of animation you can try to use minimum of keyframes (less information, less work, true to original). Please, please simplify it you are doing much more than needed. M&M on its own stands out among other projects, maybe check the palette they used, show people that it is not just another 3D action rpg, you don't even need to invent anything it looked good as it was.
Please look into the terrain as well. It was a big part of the game, for me its simplisity is a real signature. It was simple but cleverly used to form a level, not just a land.
Please don't cut out everything from the UI. M&M VIII did this minimal and right already. Just take it and make minimal adjustments, don't go full minimalistic, UI is art as well as anything else in the game. If you think that UI from VII is superior and you are ok to force 4:3 ratio, go for it.
edit: Sliding party panel from there might be actually a nice thing:
https://www.youtube.com/watch?v=S9W7Y2D11qk
By the way, mouse look and headbobbing makes it look like some TES knock-off or our beloved IX.
Please don't take it close to heart, I've been a long fan of the series and I know how hard it is to get it right with this kind of project, but someone has to make it since all 3D games from the series were unpolished/unfinished and later on no one really tried to build up on it. Wish you good luck.