Think he meant RTSRPG....like the Vats system which has a rts feel to it. It reminds me alot of Tactics games, like Advanced Wars or FF tactics.....although I hate tactics games with a passion they are too slow and boring for me. VATS system was a little different though, and it worked well, esp for 2D. For 3D it was just for the kill shots and didn't have as much to do with movement.
I don't think they can do a traditional upgrade without slowing down combat too much. I can't really think of any better way then the current 3d vats system tho, other then maybe special animations and rewards for shooting other parts of the body that may disable the enemy like arms or legs or sensors when a head shot isn't really possible.