This update will alter the way player/foe Combat works a *LOT*. player/player combat will stay the same.
First of all, the foe panel will be a lot easier to manipulate. This update is probably coming today.
When you're in Combat with a Foe it'll open up a different fast interface. Here you'll be able to see your stats and also your enemy's stats if it's enabled. These update as needed.
On your turn you get to pick your next move with a single click (your weapons appear as links rather than a select box). You can also switch over to the Interactions menu to do other stuff like use potions or w/e.
After you take your turn, the enemy automatically takes their turn and you get to pick Dodge/defend options if any are available. Again these are one-click links.
All the messages get aggregated so you can see all previous parts of the fight by scrolling up.
This update should speed up battles pretty considerably and over time allow for the new features of the Combat Update. I want to eventually allow PVP in this mode if both players are active at the same time, as well as cool stuff like players fighting an enemy together (once engagements allow for more than two parties). Time delays would also be nice to make battles feel more "alive".