SLO aims to be skill-based. What you're suggesting is another MMORPG that has simply been put into a Naruto-like context. Not only does this game intend to shun the common MMO features of simple, repetitve, click-based combat.
And welcome to SLO. :p

Have you ever played the games I mentioned in the post?
How is, for example, dark souls franchise a point and click?

I get that you want this game to look like uncharted 4, have an amazing net code (despite not having monster servers, or the money to get those), with amazing dynamic combat, that has never been seen before in any game.
That's just not going to happen.

There's ONE coder.
An indie studio has like 80 developers. An AAA studio has hundreds, even thousands, of developers working on their game. It still takes them 3-7 years to make a game, even when having "bought" an engine, like UE3.

I don't know how serious this game plans to be, as in, the development for it.
Anyway, if it's something that's looking for completion, and having a properly functioning game, then I think the game may want to change direction.

1. The graphical style may not be that suited. "Realistic" characters only really works if you have a lot of money/time/experience to put into modeling, texturing, and animation. Another option while going for "realistic" characters, would probably be UE4, simply because it's a pretty strong engine.
Making it more "chibi" like would maybe be a better idea, then even without amazing skin textures, and so on, it'll look acceptable.

2. The way combat is implemented, to me, doesn't seem to be very realistic. It may work for a DM game, or something like that, but even then, I doubt it'll end up working well.
There's already been a lot of Naruto mods doing combat that way, one of the most successful results is this - However, SLO looks to be even faster, which may result into even more gimmicky combat.

I think a possibly more viable way would be to slow down the game, and make it into a more "traditional" action combat MMORPG.
Examples would be, C9, Vindictus (couldn't find anything for them), TERA ( ), and even Dark Souls series (it's obviously too slow).

3. It's probably a good idea to drop stuff that's copied directly from Naruto, rename things, and remake things is probably fine though.
I imagine licensing for Naruto is pretty expensive, and may not even be able to get. You cannot release a game that generates money, when it's copied from Naruto, you'd be sued and shut down.