The equipment system is very simple- there are a few types of weapon (only one for the Mage class and barely two for the Ranger class), one type of usable armor for each slot for each class, a few spots for accessories and a light source, and that’s the whole of it.  Using equipment is a little bit tougher- most equipment has a ‘power’ rating, such as 4 or 26 or even 85.  You cannot use a piece of equipment whose power rating exceeds your level by more than a few, so between level restrictions and class restrictions, a good 80-90% of any items you find or can purchase are going to be useless to you.

Healing operates on an interesting basis- while you ordinarily do not heal over time, you can use potions, food, or sleeping to restore your health.  Health is also automatically restored when you gain a level, though levels come very slowly in this game currently.  Food is inconvenient, as you must sit still once you start eating and cannot do anything but jump in place until you finish eating whatever it is, and sleeping is often moreso as you need to find a bed or bedroll, lie down in it, and then watch time pass roughly four to six times as fast while you gradually heal.  Potions are vital, but they are also very rare to find, making them perhaps too valuable.

Attacks come in a variety and are not so far very well balanced, though this may be partially an effect of the current state of the equipment and leveling system, as the basic attack is virtually always your best option, when comparing damage dealt to time spent attacking.  Ranged classes have a massive advantage over melee classes, as while both can attack while moving, ranged classes can do so from a distance and do not seem to have noticeably worse defenses than a melee class, and their special attacks tend to be more frequently useful and usable than those of the melee classes.

Overall, the game is indeed an alpha and it shows- there is a lot of potential there, but very little of it is realized yet.  This is understandable, as the programmers are only just finished properly preparing the base systems of the game, so while it isn’t much to look at so far, much better can be expected of it in the future.