As of right now, that's how it's intended to work. When you're forcibly dismounted by someone else, the horse stays around though. I can't remember why I made that decision now. Maybe the horse should stay around if you dismount by any means during combat? Curious what others think.
The combat seems quite interesting.
I wouldn't say mounted combat is groundbreaking as pathfinder seems to do it (i've heard it's quite buggy and decides not to try it) but it looks quite interesting.
And unusual for an indie.
So, it seems you nailed the combat part or at least the engine.
The other part being the encounter design, aka balancing enemy parties and handcrafted encounters vs randomized ones which could turn a good system into boring garbage, unfortunately.
What about the rest?
Quest design for example?
Exploration?
Is there some quests and side quests?
How complex are they going to be on a scale of 0 = fetch quests to 10 = Prelude to darkness quest design (aka interlaced quests with multiple solutions branching out and influencing other quests)
And exploration, on a scale of 0 = garbage bin collector (aka Pathfinder and Rogue Trader games) to 10 = Arx Fatalis (no garbage to collect every other step, overall ambient, monsters growls alerting you to their presence and adding to the atmosphere and the tension)
7/8 = Might & Magic III (secrets everywhere, points of interests all over the map)