In most MMO's and Hack N' Slash games there's a class dedicated to unarmed, usually the Monk. What I suggest is a new additional spell tree that affects unarmed attacks and utilizes healing and DPS, or even party utility like converting damage into health. I also want to suggest some tinkering with the damage nodes in the talent tree to affect unarmed damage. Is such a thing even possible?

It's certainly "possible" but probably more likely that i'd add a new weapon class called knuckles or something (like in Ragnarok Online). Would have to think about how i'd implement it though!

Just my two cents on the matter: I think a traditional Monk class would fit nicely into the Nature magic skill line. If you look at traditional monks in D&D the weapon of choice is usually Quarterstaff. Maybe some kind of hafted spear-type weapon and nature magic similar to Shillelagh or other druidic spell schools could unlock a really interesting build path

Not implementing this for Dissonance, but this is coming soon for something else... :O