The lvl grind is what makes most ppl quit games, be it via a built-in bot or or you having to do it all yourself. mainly 'cause in order to get that cool looking outfit or to afford a certain mount, u need to be a high lvl which kind of takes the fun out of things. but yea, i agree: leveling is something the MMOs should start discarding these days and instead focus on the social aspect more... so i guess the answer to your last question would be "yes! they're on to something good actually".
While 1000 variations of "kill 10 rats, gather 6 mushrooms" are easier to create than real content, it's also easier for competitors too. What this also allows for is creating games with more social mechanics. I personally love it when a game requires aiming, but when players are more equal in power, you can also make social skills, like the creation of alliances, a larger part of gameplay. This helps to eliminate some of the power play seen in purely skill based games (like many FPS and RTS games) that make others avoid those genres, and makes it so that the skilled players can contribute in other ways.
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