David Rosen pulled off quite a few little masterpieces -- his gamedev competition entries always had fantastically unique aspects. I cannot believe "Black Shades" was almost 20 years ago! (I have no affiliation, but I am glad to see https://www.wolfire.com/games is still alive and kicking!)
Lugaru and later Overgrowth have been the outcomes of what can only be called a decades long obsession with getting the player controls just right, allowing very natural and responsive control and movement, through creating emergent behaviors from first principles, resulting in a rich and natural interaction with the environment (and other characters, see the fighting mojo), in contrast to the many, many AAA titles that just constantly break the immersion through unnatural, jarring behaviors and frustrating limitations.
It's definitely possible to "not bash into walls"
You don't always need to have bespoke animations- sometimes keyframes and realistic constraints can get you there. I think Unity is working on a framework for natural human animation.