If they nail the combat, meaning its not terribly challenging like Dark Souls can be, then I think it could work out great.
Valheim is an excellent Survival Game similar to Ark and that is 3rd person.
Probably the two main driving factors behind this decision was Elden Ring's success and Valheim's sudden success.
I feel 1st person should still be an option for when walking around primarily, but also when harvesting or in combat. And by in combat, it probably won't be too functional but that's fine.