With “neutral stance” I mean a kind standard position of the sword for defense. Like e.g. in boxing having your fists risen before your body and head. That’s the “neutral stance” in boxing. In sword fighting it’s probably just holding the sword in front of your body in order to be able to react to attacks. When you look at modern sports fencing it’s usually holding your sabre in front of you directed towards the chest/head region of your enemy. In martial arts the standard position depends on the fighting style (most visual representation in classical Chinese animal inspired Kung Fu styles known from Hongkong movies).
In terms of gameplay I mean a neutral position that doesn’t cover any direction (compass has no red indication). I don’t know how this works with a gamepad but with mouse/keyboard it’s impossible to do so and that makes combat needlessly difficult and clunky. You always are in one of the five positions indicated on the combat compass. A neutral, “centered” position, to which the player automatically returns after every action (or by clicking a button) would make directional attack and defense actions much more precise and intuitive imo.
My critique with blocking is centrered on the automatism of the system. For parrying you obviously need skills because you actively have to press the button at the right time. There is no reason why blocking should work without that since parrying and blocking are basically the same in the first, defensive step. It’s imo just useless and having it as a “panic function” only takes away from the tension of the fight. And walking backwards basically has the same function already. So I would abolish blocking (also frees one button!) and unifying it with parrying. So blocking and parrying would function the same way in the first step. They player would have to realize from which direction the enemy wants to hit and move the mouse/joypad to the correct direction in order to block. A successful parry would require another, well time attack as a second step, following the block.