I certainly wouldn't want every game to take this approach but it makes a nice change of pace - something different. It
is an action/RPG and they usually rely on certain gameplay mechanics (addictive combat, loot, skill trees) rather than a strong story and questing (yes, there are exceptions). I mean, take Sacred - surely noone thought the quests were the strength of that very successful game? Titan Quest has been very successful but noone has praised the story. Fate generated a lot of buzz and that was nothing but combat.
So, take good, addictive action/RPG gameplay (hopefully, anyway - go with the example

) and add dynamic competition and quest generation…sounds more engaging than just whack-a-mole like a lot of them.
Action/RPGs aren't my favourite mode but this sounds more engaging to me, anyway. Heroes of Might & Magic and Space Rangers both come to mind as games I liked with active competing NPCs.