The new LOTRO way of doing them can be seen at the end of Book 14, and supposedly it'll be used alot more. I didn't care much for the cutscenes where you could walk around and all but ignore what was going on, nor did I like the ones where a boss would just stun you while they did their thing.

The new way is pretty cool cause it is much more dramatic. You can have more story w/o it just being a wall of /say text. Being able to keep the player's attention easier means they can do some more dramatic scenes.

I also happen to know they use a combination of the 2 with some parts of Moria to pretty cool effect.