That would be taking the game more towards simulation. I agree that it could work, and could be a very exciting game to play; however, I think that the main attraction in it would be exploration and resource building.

What you could do is write the story about the entire world, though: once it hits some key conditions, trigger shifts that dramatically alter it. Now *that* could be interesting. If it had "mini-stories" about the characters in it, it could be uncannily real…

Problem with rpgs is that when it comes to the enemies you have to perform like a rambo/conan or somthing. You must slay hundreds - if not thousands of different enemies from orcs to mutants to black dragons and evil gods. Its totally unrealistic to expect that any player could survive such an ordeal without dying atleast hundred times. Im really tired of the saveload -merrygoaround. I much prefer games where Im not forced into almost impossible encounters.

In example som of the baldurs gate battles are so hard that they are more like puzzles than battles. You die dozen times just to find the right "recipe" to succesfully kill the enemy. Immersion dies right there.

It is why they are called games and not reality.

I think designers have a problem with breaking the fourth wall. Myself included through my little server. Too often they get jaded because they see through the mechanics for what they are and not the experience the player is (or is not) having.

Its like a salesman who gets the idea the buyer is an idiot for buying their product in the first place. There really is nothing wrong with the product or the fact the buyer buys it. Its just that the salesman realizes the buyer is not as rational in his purchasing decision as he thinks he is and the salesman has become an expert in bringing a sale to a close through experience and a little psychology.