JarlFrank
I like Thief THIS much
Tradition is a meaningless word.
Mount and Blades plays such that there is a limited amount of narrative, but there's always a story. It is a sandbox game, but that doesn't mean you play idly with sand castles - every faction is controlled in a specific way by the AI. They battle with each other, take prisoners, have to deal with bandit raids and the royals have to take brides. You can just be a dick bandit and go around and have your fun, or you can get involved in getting your own fief, or conquering another nation. The sandbox gameplay is driven by a good amount of simulation, such that organic stories develop.
Saying that isn't a "traditional story" is part of the reason why so many games suck these days.
Until M&B's simulationist approach to design can provide the kind of narrative Fallout New Vegas/Vampire Bloodlines/Deus Ex/Tormen/Witcher 2/etc provides, the word "traditional" will not be meaningless.
I am looking forward to the day it happens, but I am not sure it will be anytime soon. And until then, I will always prefer "traditional" human mindcrafted RPGs over pure sandboxes like M&B.
Also, Mount and Blade has some mechanics set in place that make the whole thing rather boring and minimize actual things that can change. Named characters can only be captured, never killed, for example. Cities are usually static and don't change much during the course of the game- It doesn't even halfway reach the simulation complexity of a strategy game like Crusader Kings or even Total War.