A lot to take in here, one second...
For one, the combat is not a bad thing, just an observation. Interestingly enough their Health/Endurance stat blocking system was done before in SaGa Frontier, where it was HP and LP. Literally the same mechanic in the end.
I find the power and stat distribution a bit over the top though. One of the reasons why I didn't like 4th edition DnD was the over-emphasis on the four defenses, and how to build characters who can be a master at killing one defense (a nuke basically) or who can take on all four at the same time in a pinch. I never really cared for it, even in the variations found in Pathfinder or other tabletop games, so to me it feels complex for complexity's sake most of the time.
I also don't mind the encounters being difficult, but I do kind of question the design choices of the difficulty itself. I would bet many folks would head to Caed Nua quickly because of not just the main story, but also due to the fact that it's your stronghold and folks want to start upgrading as soon as possible. Going too early makes it a grind that yields a good reward in of itself, but an unnecessary grind I feel because of the game progression. The Nakshel Mines in Baldur's Gate was a fairly easy dungeon to get through for a level 2 party compared to Caed Nua, and that feels like a conscious design choice so you wouldn't be wiped so quickly. Ironically enough, it was the encounters leading up to Nakshel that were tough, the wizard near the inn, the giant Ogre raid, all of those fights that proved a challenge.
And I like that better honestly. Let the main story be tough, but let it be tough and even over a case of underpowerment for the main story.
That's all fair, but at the same time... one isn't required to go for Caed Nua first. Many players DO (I know I was tempted to beeline for the Stronghold), but that doesn't make it a requirement, like gaining X amount of power to leave the Hinterlands. I think you are laying a lot at the feet of what you perceive as a forced grind section of the game that isn't truly the case.
As for the side-quest writing...i'm just not really feeling it. The miller quest is more or less the same as any binary choice and consequence action in the game mechanically. I like that we get a reputation out of it, but I dislike the fact that we have to do it to keep up. The Astariums and a lot of the questlines in Inquisition was very straight forward, outside of the main quests to be sure, but as entry level side missions they were always optional. You also had some gems in there, the Blades of Hessarian, the Cult in the Hinterlands, the recruitment of agents, Fairbanks and the Dragon in the Desert, and passing judgments, that are on par with the decisions of the Miller questline. Few and far between, but ultimately serve the same purpose.
I had this discussion with someone in the DA:I forums a few weeks back, except it was in regards to DA:O's side quests instead of PoE's.
I really appreciate options in quests. Even moreso than true narrative storycraft. Bland dialogue doesn't hop out to me nearly as much as linear quest design.
So the options you gave of good side quests, while they may have been written well, still fall flat with me. For the Blades quest, you aren't given any options - you either craft the item to challenge the leader or you don't. Sure, you can kill him without challenging him (which does nothing except leave all of the Blades hostile to you), but that's more of a quest failure than a choice, in my eyes.
Same thing for the Hinterlands Cult - nearly everything is handled very linearly minus the rewards for certain quests, like Analis giving different Influence or recruit bonuses. While that may have more meta-story applications, it isn't that much different than deciding between 100 gold or a +1 Sword of Smiting.
The judgments I feel are the few side quests that offer true choices. And those are done fairly well, if sometmes a little flat. But that is a vast sea of linearity to find the one oasis of non-crit path choice. YMMV, as always, but I was nearly giddy with the choices in the first dungeon of PoE, where I could solve the puzzle, I could attack the imp, I could avoid both obstacles altogether... options that have next to zero writing and which ultimately don't affect much of anything... but still, choices. Choices which let me define my game experience and define what my character does. Those things are worth more, to me, than a mountain of linear, excellently written quests.
Not to say that all of the quests are bad, despite being a bit fluffy in their prose. One quest I really liked, which was a complete side mission, involved a boy in Defiance Bay. It was short, funny, and to the point, but it was memorable in the end despite being a scavenger hunt that had a comedic payoff. I also am enjoying the main plotline a bit more, although I am finding the animancy story stuff to be very one note so far. It's a cool concept that is slowly turning into the "big bad" of the world. At first I thought it would be tech vs magic sort of thing, now it's tech vs. morality based on what ive seen so far.
So it's really hit or miss. My complaint I guess is I have to do these quests to be competitive with the game itself, which to me is not good game design by any stretch of the word. It would be like BioWare telling you to close all the rifts in the Hinterlands so you can move on to In Your Heart Shall Burn, it is gating your progress to side-content which people may object to as a game mechanic. I think this is why the gathering of power in Inquisition is so easy, doing all of those side-quests to unlock new levels or to progress the main storyline, the choice is yours ultimately. I remember my first playthrough and i left alone the Hissing Wastes and Emprise Du Leon to beat the game first, then I would visit those area's later post-credits.
I guess I haven't encountered the feeling of gating yet... but I'm a completionist at heart, so I naturally "grind" side quest content first anyway.
That is another difference in design, Inquisition is going to have content after the main quest is finished, Pillars I will be surprised if you can continue afterwards, so they need you to see everything before you get to the end.
I guess I am being overly critical of this all (and I have to be since I get to review this one officially) but those are some big mechanical design flaws that I can't help but raise an eyebrow too at it in the end. It is a restricting aspect of the game to me.
I'd be interested in your review, Rob. Let us know when you post it.
One takeaway I have is that, as you know from tabeltop experiences, sometimes being underleveled doesn't mean you need to grind. It just means you may need to engage in tactics you might have never thought of normally. This is usually much more prevalent in tabletop, because if that level 20 lich in the next room your 5th level party just spotted is in your game, you can't reload a save to an earlier point to grind out some levels.
Maybe there are other solutions outside of direct combat. Or maybe it is forcing the player to do things like scout, set traps, switch weapon sets, plan out encounters... get good at the actual gameplay mechanics instead of steamrolling through with the most direct approach based off of character level strength alone. One thing I think PoE is guilty of is the same thing nearly every other RPG (or video game period, honestly) is guilty of - a poor approach to teaching the player to use the more nuanced game mechanics. The game tells you how to click the sneak button and what it does, but it doesn't encourage the player to do things like scout out an area, lay down some traps, lay down a slick spell, switch to a long range weapon, attack an enemy, snipe it as it takes damage from the trap and slipping, switch back to melee weapons as the enemy gets up and appraoches, then begin the encounter as normal, but with a big chunk of damage and penalties inflicted on the target.
Not saying you don't do or know how to do these things, but many gamers just want to rush in and attack every enemy using the same rotation of skills and cooldowns over and over again and get frustrated when it doesn't work every time. Maybe it is forcing grinding, yes. But maybe it is encouraging people to get better at aspects of the game they aren't fully utilizing.
But that's more of a tirade than a true response to your statement.
As for the best RPG I ever played...now a days I waffle between Planescape Torment and the Mass Effect Trilogy. The reason for the two is most likely story and presentation, the narrative aspects that really held it together, even when it's mechanics were mediocre at best. I remember cheating in Planescape Torment just to get full HP progression for the first few levels, so I can actually survive the game in the end.
That's not good game design (or good tabletop design but i'll save that for another day) but I loved the story and it's presentation, warts and all. I am just not feeling it with Pillars of Eternity yet. Maybe as we get further in that will change, who knows.
Honorable mentions include the Suikoden games, which if you ever play are really damn good, Chrono Trigger, Pokemon and the Ogre Battle series.
Interesting honorable mentions. What Crono Trigger did as a time traveling video game has yet to be matched, in my experience/opinion. For Planescape, I'll say that is a solid choice, although one with mechanic and leveling issues, as you freely admit.
I can't agree on Mass Effect. What it does well is truly impressive, but narratively speaking it was such a dumpster fire from ME2 on (not even just the ending of ME3, but pretty much the entire story outside of stopping Sovereign and Saren) and the progressive shift towards more of a FPS over an RPG made it seem like it almost fell outside the scope of the genre by the end. But that's a total derailment of the topic at hand.