They never said there would be advance melee in 1.1. In fact, they've protested numerous times that advanced melee will NOT be in 1.1, and thus it is. The difference? The ability to instantly counter a melee attack after it's been blocked. And two people swooping at each other will now have a winner decided by the amount of ki (how much of the blue bar is filled) they have stored.
Yeah, anybody who's opened up HL model viewer to check out the models and anims and then and checked the hit boxes box on the 1.0 models probably still has the bruises from falling off their chair.... *reaches behind head and rubs up and down* : \