Torchlight is a 20 buck, 11 month game, so there's a limit to our ambition ( I like to eat, and hey, I just lost a WHOLE ambitious game a month before public beta, so it'd be nice to get some money rolling in the door in a crummy economy with twenty-some-odd mouths to feed ) Plus, I like this kind of game for a 20 minute diversion. I love my RPGS, but occasionally (ok, often) I just want to beat the everloving crap out of something.
As far as its status as an RPG - well, let's not beat about the bush, it's in the lightest sense. There's no dialog trees, no moral choice. If you think of it as a casual action game with light RPG trappings, that's probably more accurate ( and is more or less what ARPG has come to mean ).
If you think of it as Fate+++ with moar blood, better levels and artwork, better loot, and a full mod kit, that's pretty close to the mark. It sure doesn't aspire to being classic Fallout or anything.