I was contemplating any possibility for "cursor" which can be done in real time. As he put it, it doesn't sound like if its a proper cursor, anyway. An item mode which pauses the action (even if it's only your character's) would be really unnatural, if you ask me. If I had to bet on something, I'd say they'll be using Shadow over Mystara's system but without the need of opening/navigating/hiding the menu/roulette with a button, and just using the analog stick whenever you want to select item/spell.
But the point resides in that he indeed states that you use "the analog stick to select objects" (to later add that they're thinking about using the touch pad for that on PSV). I can clearly read that as if it's assumed you'll be using the digital pad for character movement, and then you have the secondary controls.
