Ryan333: Lionheart: Legacy of the Crusader is always my go-to example for this.
That's a great example. The first act on it's own could be one of my favorite RPGs of all time, it's a fantastic setting and I had tremendous fun with everything, much more so than any of the Infinity Engine games... and then there's the rest of the game. It's all just like you said. I never even finished the game, sadly. There is a brief episode when it picks up a bit later on, I don't remember it too well, but I think it's some town in a snowy mountain-y area, where tehre again is a bit more story and roleplaying than just combat, but it's much too little. Other than that it's just grindy, un-fun combat. And indeed, as a magic user I was completely screwed, it was almost unplayable.
Still, that first act is more than worth buying the game on sale, if anyone is wondering. I wish it would get a remake, or a sequel that would take full advantage of the setting.