MrClam said pretty much everything on my mind pretty well. The art and sounds are fantastic, but the game and dialogue need a ton of work. I'm just not finding the game all that fun yet. The combat feels dull; some sort of combo system worked into the sword would work well. The leveling and quest system is interesting, though.
Story and presentation-wise, the dialogue is full of little errors and clashes with the tone; using emoticons in a dark fantasy makes absolutely no sense at all. The UI could also use some polishing up, but being an alpha, that's not a big deal. On the positive side, the speaker performs his job perfectly! Sounds like a grandfather telling a story, and that suits this so well.
I hope the game is updated greatly over time; I'd even argue against uploading a pre-alpha to begin with, but I won't make a big deal out of that considering this is polished enough.