The fact that instancing exists seriously detracts from the weighty-ness of the world, even if you never go to the instanced zones. Just like if all character models clipped through each other, or waypoints were added and you could teleport w/o a spell, or you could open up your bank from anywhere in the world, or death didn't leave a corpse. All of these things add to the illusion that Norrath is a real, solid world.
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