Do you think this feature would add to the fun for everyone or just for a few kung-fu enthusiasts (who would probably be better off playing a wholly different game)?
We must part here. This is not simply about kung-fu but about all hand-to-hand combat. And yes, a variety of personal combats would add to everyones game, not just yugo fans. Name a society that doesn't have personal combat! (Maybe tibet)
Simply put, its not just about a minority, if it is one, but its about how the whole game is effected. This combat system doesnt(current) allow for specialisation. Battle axe or crossbow is best period. If we allow some specialisation in combat, it makes culture more diverse (after all cantr is feudal, who can deny the sword really rules)
There are more accurate weapons, better durability weapons, faster weapons etc. In RL, this created cultural diversity. It built civilisation, in a direct way.
Principally there's nothing wrong with that, but it would cause a cascade of side effects that would certainly not add to the fun of the game at all.
Ive suggested originally that hand to hand would be essentially behind weapons, while close with a good training effort. There is balance built into the idea! If you see a balance problem, suggest your opinions and well discuss it...
Read the OP again. Ive considered all this.