I had actually considered buying Daggerdale. I will probably buy Torchlight.
Personally, I think games like Daggerdale and Torchlight should be looked at for what they are: XBLA or PSN arcade offerings. For a $15 price you know, to some degree of certainty, what you are getting/paying for. Compare that to a AAA title that fails to amaze and you are only out 15 bucks compared to 60 or 65.
Further, when I buy or play games like Daggerdale, I go into them knowing what I've bought. Also, I have a pretty reasonable assumption of what the gameplay will be like. That assumption is usually this; some brainless hack-o slash-o fun usually to be had with some friends.
I am not advocating that games like Daggerdale should be given a pass for poor quality, nor judged by a different set of critera than other games. But, in all reality, they are "arcade" titles with shorter development cycles and not so big budgets. These things should be taken into consideration before torching the game and saying it's the downfall of action rpgs.
What would be a more accurate statement is developers seem to milking certain action rpg franchises for all they can. Worse, they usually end up ruining the reputation of their prospective franchises. Prince of Persia is a good example of this. "Sands of Time" was an incredible game. "Warrior within" was decent. The "Two Thrones" was so so. Then came that cell shaded thing and the movie tie in "Forgotten Sands". In each sucessive game the quality became worse and worse.