Can you tell me how you would navigate with you keyboard ? I remembert asking some people that requested this, but I don't think I got something out of it.
I think simplest method would be to have keyboard access the gamepad left stick axis to allow controlling via that with wasd &/or arrow keys. The cursor I suppose they could hide by creating a blank cursor. As for interaction the only thing I can think of is action areas & maybe triggering a loop on enter to listen out for when character is facing the correct direction & when they are, they show a icon on screen to signify that the player can interact with something. I suppose they could also use both keyboard & mouse, but ideally that would only really work if left click could be prevented from updating the target destination - maybe you could add that option (just like right button, etc aleady has) to the mouse properties tab / data structure?