That's the first time I've heard VAT described, and it sounds like an awesome mash-up of FPS and turn based strategy concepts. I'm an odd bird, I know, but I've always enjoyed the notion of real time play breaking into spots of turn-strategy. Basically, I want my Tactics, my RTS and my FPS just how I like my chops, mashed potatoes and peas: all smushed together.
My fears of VATS turning out to be some bastard child of Fallout: Tactics targeting have been relieved. I figured I'd feel a little out of place regardless just because of developer transition, but I'm still looking forward to it more than any other game.
Well, as long as the fans are happy... I'll have a look at how it turns out before I even think of buying.