It doesn't seem they are using any sort of motion capture. All the movement in this game are unnatural.
They are using motion capture for some main story events. It can be noticed when you first meet Lae'zel. I am sure it is captured, and they showed the capturing process in videos. Other animations look pretty solid to me compared to other RPGs (not ACTION RPGs)where you can see NPC faces. The last one was probably Fallout New Vegas, and I should probably be silent about its animations.
I am still unclear as to what is happening with the PC voice-over. Has this been abandoned? Presumably fear, happiness etc would be better communicated by the PC's voiced responses. I fear we are no longer going to get that for our custom PC, but presumably we will get voiced acted responses when we are playing one of the premade characters? Or will they be silent too and only speak if they are NPCs?
If you are talking about a companion-voiced narrator - yes, this feature is probably abandoned right now. And I am sure there will be no voiced responses when playing as a premade character - making a voiced protagonist is a huge blow to immersion, and all studios who make RPGs know that.
