Patudo,
I do not even see how this work could be confused with a Wuxia piece of writing. Stylistically it is not even close, there are no driving Wuxia themes or competing schools/styles of martial arts. I can't even say this is a "fusion" work as you have put it. The deepest roots that this story draws from is obviously from the fantasy realm, and having read the Shannara series I am surprised you didn't pick that up.
Another thing I would like to mention is the simplistic plotline you brought up. The great thing about good fantasy novels is that you cannot guess where the world is going. Your analysis of "simple" plot lines blows me away, because no fantasy book worth reading that I have ever picked up had a predictable or even simple plot line. Why? Because fantasy is so much more than that, the author has to depict a foreign world while at the same time moving the characters through it. It is one of the most difficult styles, along with good science fiction, since the author is absolutely creating everything.
I am amazed you compared the combat to Jin Yong and thought that he was trying to emulate him in an amateurish way. I saw much more of Robert Salvatore than even a glimmer of Jin Yong. My sense is that you don't read much fantasy or wuxia since you came in so far off the mark. I suggest you read the Wheel of Time by Robert Jordan to see how epic a fantasy world can become. I honestly see Ren Wo Xing moving in this direction successfully, meticulously painting the world along with carefully placed actions and events to lead the reader further into the journey.
The idea of writing so readers can understand is absolutely ludicrous because that is exactly what the author is doing. He has presented a world so totally foreign, with its own system of magic/mysticism/fighting/relationships that we are all ignorant of at the outset just so that he can explain it to the reader. This world is independent of any "style" of writing. What you need to do is take the time to let him teach you how things work in his universe. The author has done a great job of slowly unfolding this world, giving the readers just enough to wonder about the next thing to keep them reading. A predictable world is not worth taking the time to read about.
I am trying to understand why you have struggled so much with this work, and the only thing I can figure is that as you read the work you had the expectation of a wuxia fanfic. When it did not turn out to be wuxia at all you were highly disappointed...I guess I can understand that, but maybe I am wrong.