lowyhong: Tempted to try out the Fate demo, but I heard it installs WildTangent drivers or something which is a sort of spyware? Correct me if I'm wrong.
Anyway I really think the hack n slash genre has been stagnant for too long already - by hack n slash I exclude Hellgate since it's more like a hybrid of genres. I almost think the genre itself is regressing, since I'm having much more fun with Nethack / Dwarf Fort / Doom Roguelike than Diablo 2
The day someone makes a graphical Nethack, complete with all the little nuts and bolts like praying and washing your face, is the day I will shed tears of ultimate joy.
Fate's not bad if you like the genre. Personally, I dislike Fate because it's repetitive (it reminds me more of Gauntlet or Fushigi no Dungeon than Diablo in that respect) and installs loads of spyware. It doesn't just install WildTangent, it was published by them. As far as I know it's impossible to install the game without it, so DRM types will want to avoid it.
I like roguelikes, esp in the D2 mold. Have you played the console titles? Justice League was really good, if you haven't played that. All the best roguelikes/Diablo-styled games lately (besides Titan Quest and Sacred) have, oddly enough, been released on consoles, mostly using the Snowblind engine (excluding the Hunter games and Baroque, which used a different one).
Good PC action/RPG games in the last year or two have admittedly been kind of sparse (Titan Quest and .....), and big budget failures have been more common (Space Siege, Hellgate) but there've been some interesting succeses like Divine Divinity and Heretic Kingdoms that really pushed the boundaries of the genre in the last few years too. On the plus side, even the awful games (SS, HG) tried new things - they just failed. These things happen in cycles. If D3 is popular, expect more of this genre.
Honestly, I think D3 looks pretty good. I'm cautiously optimistic. I can't think of a bad game Blizzard have put out.