I don't really consider that 'exploration.' Sure, you have look around a bit to find the mines to complete the quest but you're given the actual quest in town. That's more like a positive since there's no quest compass . Same with Ivan and the monsters. You get those quests at a central hub and (as you pointed out) those things are all a fairly short distance away from said hub. The ruins and such... loot... yes loot... it's superfluous in this game. Hell there's so much of it they charge ridiculous sums of gold for the armor
So loot is superfluous despite that you need it to buy Armour? Does not compute.
(another design flaw tying it to a reputation and gold grind)
How is that a design flaw? It is awesome, you have a real initiative to get more REP that way, gold grind is part of every crpg, you get gold by doing quest, looting, and stealing there is no grind in the sense of having to go out of your way to kill every mob to get money.
Of course, PB never really could do the balanced economy thing. Usually you stop looting things in the second or so chapter of G1/G2. That's a whole different discussion regarding scarcity, though, but it still ties in to exploration. There's nothing fun about finding a cave with a gold chalice in it when you already have fifty thousand gold. The shadow beasts... eh... why even kill them? Experience? There's no shortage of that in G3 just sticking to the main plot lines. Loot? Nope. Their skins? Same as loot. Challenge? I guess... The rebel bases are just more quest hubs. I never considered finding them as part of exploration. They're really not hard to find and are part of the main plot line.
This makes it not an exploration ,why? I am not much into exploring in games like Skyrim where it doesn't matter where you go because you have quest in every cave are dull to me. I rather get a general direction, and actually look for something. There is no real need for finding something specific where every place is filled with awesome loot, and awesome loot isn't anything special then just dull. Getting Armour in G3 now that is something, you can't just stumble on it in some cave.
I'd say the only quest related thing that requires any kind of exploration off the beaten path (moderate amount of poking around you do in any game or even MMORPG) are those extra people you recruit for rebel camps. Some of them can be tricky to find. I can't speak for the arrows because archery always seemed to be brokenly overpowered in G3 given some highly suspect AI. But the fact that a world is densely populated does not mean it has good exploration. It means there's a lot of content and I never denied that. It's just that a lot of the content is fairly dull and most of it isn't particularly hard to find... just like in MMOs.
Having shit not very hard to find doesn't make the game MMORPG.
I understand that argument (and even mentioned in one of my many previous discussions over the game) and my conclusion was that I'd much rather have the fixed locations and deal with 'exploiters' or people just stumbling on to a site at random. There are also at least a couple of ways you could make them 'exploit' proof (if desired) like the non-scaling enemies you mentioned or have access require certain skill proficiencies you'd only obtain at certain level thresholds, etc. To me, the 'completionism' method of dispersing loot is poor design. No argument will convince me otherwise. I'm not going to make the 'immersion' argument because I rarely get immersed in a game, anyway, but the method they choose in G3 is little different than just spawning a sword out of thin air after you've killed X number of creatures (assuming no respawns which I don't think there are in G3), or walked Y number of in-game miles or some other goofy a-a-a-achievement unlocked gimmick.
It is pretty different because most of weapon chests are in important places. You don't have much chance to find them in a random cave.
How so? I suppose it's subjective but whenever I stumble on a location with monsters that kick my butt the first thing that pops to my mind is: hey there must be something really cool there, I can't wait to level up and come back. Of course, some people prefer the scaled approach where you can go everywhere and do everything allowing them to 'explore' at their leisure. But where's the fun in a game where you can visit and accomplish everything at level one? The reason G3 is accused of being a single player MMO is because the vast majority of the quests are dull and others are excessive grindfests like city liberation and clearing Nordmar of orc camps (something I opted out of, btw, since playing the Innos path I had already slaughtered about 200+ orcs in Myrtana and didn't feel like repeating the process ad nauseum for something that would make no difference in the game). As an aside, a better way of handling city liberation short of a straight out fight would have been to assign a number of quests to npcs throughout the city that would help make the liberation easier. Not just 'give us X weapon bundles' but maybe 'slip this poison into the water in the barracks if you have the poison ability' or 'smash the guards weapon stockpile if you have X strength' or 'free some more prisoners to help in battle if you have Y lockpick proficiency to open the cell doors' or 'scare away some guards by performing a magic trick if you have Z ancient knowledge skill' etc. etc. It's design decisions like that which are severely lacking in G3. Again, I applaud their ambition but frown on their execution. The game just feels like a big sandbox mmo where you tool around and see the sights.
MMORPG don't work in this way at all. One of the problem with what you are saying is that MMO don't give this freedom, you can't kill NPC there, you don't have spells like bloodlust to wreck havoc, you don't have a quests that are related to killing almost every NPC, NPC don't own MQ related items that you need to get often by killing them. I liked the liberation, sure there could be more quest that would make the fight easier, and REP should be connected with getting help from Rebbels (and they mostly hardly help witch is the problem as well, and the reason why Varant has better liberation's).
The combat isn't bad either, some animations look awkward but other then that on hard or medium, with alternative AI on, and alternative balance on you can't just mass lmb, you must find a timing to attack, observe your opponents, and react to it, this makes the combat interesting to me.