So I'm interested to hear your definition of the genre first, then your best game in it (so I can set it in context - we could just be arguing about different things - I could be saying an orange is the best citrus fruit, while you're saying rasberry is the best flavoured juice drink, while someone else says banannas are their favourite fruit, and someone else says lasagne is their favourite food).
The genre is called hack & slash/Diablo-cone/action RPG - and it has evolved from Nethack. Diablo was the first popular "modern" version of the genre, and I consider it a "reset" in several ways. I personally consider Gauntlet an important game in the evolution of the genre - as it seems to have certain features lacking in Nethack - most prominently cooperative multiplayer. Gauntlet also has similar classes. Whether or not it belongs with the genre is hard to say - but I definitely think so.
Diablo innovated in terms of taking the established mechanics and the whole thing into a multiplayer action-driven game. It took steps backwards in terms of complexity, but it also took steps forward in terms of multiplayer and a strong action feel.
The Diablo-clone genre has evolved in several ways since then. You can argue every which way about what represents true evolution, but obviously that will be subjective.
I can give you details about what games evolved what features - but I don't really think it's worth the effort until we establish a common ground.
But games like Diablo 2, Titan Quest, Hellgate, Dungeon Siege 2, and others ALL evolved the genre in key ways.
FATE was developed by some guy called… Travis or something. Don't really remember. Anyway, it was almost a carbon copy of Diablo in terms of the feature-set. He added a "pet" that automatically carried your loot back to town - and that's about it for innovation.
Lots of people loved FATE - but unsurprisingly I wasn't impressed. I'm never impressed when people blatantly steal designs and profit from them. Also, it didn't have the absolutely essential multiplayer mode.
Anyway, that guy later worked on Mythos - which was a smaller concurrent project under Flagship Studios when they were launching Hellgate. After the Hellgate fiasco - they apparently took this Travis dude and started Runic Games.
Incidentally, everyone loved Mythos - and I thought it was a clunky mess with no vision in terms of design.
Torchlight is almost exactly like FATE - except with a Diablo-flavor.
Not only is Torchlight a strongly derivative Diablo-clone - it's also poorly designed in terms of character development. It also hasn't got multiplayer.
Essentially, they've made the same game three times - and each iteration is lacking something that's been vital to the genre since Diablo reinvented it.
The game is a bad clone of a game released in 1997 - AND it's made by several of the people who represent the KEY innovators of the genre with games like Diablo 2 and Hellgate.
To say I'm not impressed is putting it mildly.
So, if you want to salivate over Torchlight - could you at least step into a time machine and praise Diablo in 1997 instead. Back then, it was deserved.
