There are still reversal moves, they're been around since SF2, IIRC. Fireballs are indeed less useful due to parrying preventing even chip damage, and over all Third Strike favors careful play without overextending yourself too much. I always like to say it's the fighting game most like actual fighting, minus the shooting fireballs, robots, and stretchy-armed rubber men.
EDIT: I should actually say it's the 2D fighting game most like actual fighting.
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