I wouldn't mind Scout Harding, but there is a great imbalance between the cut scenes afforded her and the cut scenes afforded the actual participants - the subjects - of the story at hand. It wouldn't been more effective, narratively, to have some kind of cut scenes portraying the plight of Crestwood, introducing the mayor, etc.
But you SEE the plight of Crestwood. The murky environments. The small hamlet beings surrounded by demons and zombies. The people fighting just as the party arrives to hamlet's gates. The skeletons and corpses we find in old Crestwood. A huge-ass Keep useless when it comes to protection, because it's overriden by bandits. The spirits drawn to death and memories found in flooded village. The atmosphere of the entire zone changing just by simple change of time of the day after we seal the rift under the lake.
This is all contextual telling of the story through visuals and content, entirely befitting interactive, visual medium.
Telling rather than showing can happen visually as well, you know. And really, for all the complains about telling and not showing, what you're demanding from the game is to literally tell you the story by shoving it into your face, rather than trust you to pick up the (fairly noticeable) details and piece at least portion of the story yourself.
See, this is how "showing, not telling" works - a lot of it relies on people picking stuff up on their own through things that are not there to give you everything on a silver platter, in one clear swoop. About trusting the audience to be smart enough to not require constant hand-holding through the story. So instead of the scene or text being there, saying "Oh, poor people of Crestwood! Look! Look how poor they are!" the same thing is accomplished just through us travelling through the environment and interacting with it, be it fighting, or discovering clues that piece together the story of a flooded village.
Oh, and one more thing - the fact that DAO had a few more cut-scenes in side-quests really appear to stem from the fact that DAO had a hard time telling the story through environment alone, which as mostly empty and static. It's not to say that the visuals or gameplay elements were ignored, but a lot of times they were not substantial enough for them not to rely on custcenes to fill in the details, plainly because there was no better or subtler way to convey the story.
? That is what telling not showing means.
You're given information in a medium other than being shown it.
No it is NOT. You completely misunderstand what it is about.