The game was actually a graphic monster when it came out. The world is not generated with heightmaps like pretty much every modern game, but everything is designed by hand. It is one (almost) seamless world - i think there are only two dungeons with loading screens in the world. So you don't have to load every 5 minutes when you enter or leave a house like in Morrowind (one of my biggest pet peeves with almost all open-world RPGs). And you also have a pretty far sight into the world.

In my opinion, it is one of the very few 3D games that still hold up graphically, Gothic II even more so.

Now, regarding the controls, that can definitely a little bit tricky. But like somebody else said, once you got into them, they actually make some sense. The controls for Gothic 2 are also definitely a little bit more refined, and build around mouse-support. In Gothic 1, the mouse support was tacked on, and you can definitely feel that. But there are even some hardcore Gothic-fanatics who insist both games should be played on the keyboard.
Also, the game is not designed to take on several enemies at a time. You're really supposed to lure them put one by one. Though later in the game you get pretty strong, so it's less of a problem fighting several weaker enemies, because you can take a fair amount of damage.