Lets not forget the target audience originally was college age and up, wargaming grognards doing something somewhat different...
Exactly why there was no story dude, all those folks wanted to do was kill stuff
Seriously though, you should check out some of Gygax's writings and editorials through out the years. The whole role-playing aspect(as most of us think of it) never really caught with him, from my understanding, he was more of a hack and slash fella who was interested in small scale tactical battles involving wizards and other fantasy aspects. I'd point you at a link but i am much too lazy.
As for the things Atari is hinting at, i would be somewhat interested in a a tactical wargame based on the D&D miniatures rules(Chainmail anyone?). It's hard enough to find a TT group to play with around these parts, I'll never find a miniatures group, that's for sure.