Immersion is indeed a key point in roleplaying games.I intend to do my best to tell the story that's set in the big Driftmoon world I already have in my head. I can do a lot by using NPC's that tell parts of their lives. And I've always loved the stories told only by clues, a footprint, a bloody weapon.
I see immersion as such a big factor that I've found myself playing roleplaying games that have had otherwise bad mechanics, but have had an otherwise interesting world. An example would be Ultima VII. The combat, the spellcasting, the inventory management, they're all subpar by today's standards. But that game has definitely the liveliest world I've ever seen in an RPG.
Since the combat mechanics are somewhat similar to Dragon Age, they could have similar enemy amounts. There will be skills you can use on multiple targets at once, but most will focus on the selected opponent. So I'm seeing the common case to be two or three enemies, but I don't see why there couldn't be significantly more. And since we can have multiple characters in a party, there can be some pretty big battles. But I'm tuning the mechanics for the smaller battles, since I want to feel that the combats matter and are tactical instead of just bashing.
My plan for item progression is to have a system similar to Diablo, where you can buy any kind of items, but the item drops are only somewhat better than your previous gear. I haven't given this much thought yet, but it's actually next on my todo list. Possibly the items will have random attributes, and there can be rare items that have significantly better attributes.
I'll play around with the camera. There's no actual reason it's so close, other than that the framerate is faster if we have less things to show.
I'd be very glad of any help! The best way to help right now is to comment on my blog posts, give me new ideas to chew. You seem to have well worded opinions, such comments are especially welcome.