Sounds good!
I have some random brainstorm -- hope it can be of use!
BOXVR, Audioshield and Beatsaber forces the player to hit specific targets with specific hands. (Left hand: red targets, right hand: blue targets) This works pretty well. However, if any hand could hit any target, then the player could make up his own strategy. For instance, a target might have a shield which made it difficult to hit it with the right hand, or a series of targets might line up perfectly for a left hand slash.
The player could also have a sword and a shield.
If you go for dual blades, remember that both blades might hit a target at the same time.
I think would prefer a weapon which would fit the light weight of a hand controller. I think a wakizashi or a dagger. There are some weapon assets in that Game Guru thing.
Instead of the targets traveling towards the player, the player could be the one moving. So he's standing on a speeding vehicle or on a conveyor belt.
Since you already have detected the spatial position of the collision, this could be used to add some particle effects. Droplets of water, flames, sparks, etc.
Speaking of cutting, the game Katana X really got some solid cutting physics. Too bad it was abandoned.
