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I don't know if all of this simplification has brought in more players or not. I do know it has made the game almost too easy.
I can speak as a new player that the fact you can solo most things was a huge draw for me into lotro. I grew up playing GW1 where everything can be done solo but the game provides you the option to group up if you want which in turn rewards you with potentially having easier time.
Of course Lotro is not that extreme since there are still instances that require a group to accomplished, but in my opinion this is a market that currently is not explorer by other MMOs with potential audience waiting for a good solo MMO like GW1.
A big thing in the aftermath of Free to Play in September 2010 and as the "large number of players" began to move forward into the game was that "Lower Level Content" was suffering from the lack of Players.
This had a growing group of players who were unable to proceed for their Quests, especially the Epic Main Quests, as they had to wait around for Randoms, Friends, and/or Kinmates (guild mates) just to get a single quest done.
We eventually started seeing the shift where things were made more "Solo Friendly" which did help LOTRO out and helped balance out things as well as counter the decrease in Players for various reasons especially in 2012 to 2014.
This change has definitely ensured that anyone can just "sit down & play LOTRO at their leisure" and can complete the majority of LOTRO's Content. It's ensured people do stick around although there will always be those who state the "Game is too easy".
That would probably keep away about 75% of your player base. Too many just jump on to play an hour or two and they're not going to want to wait around trying to form a group just to quest.
Turbine saw that years ago when they changed those group required epic quests to have a solo option and anyone online right now can see it too via the repeated calls to form a group to do X content that aren't answered.
Also the group required concept flys in the face of how people level. What did they say?, within 24hrs there were those already at the level cap on the 2 new legendary servers. Hard to require groups when the player base isn't grouped close together.
You could still make it so that it is possible to achieve max level and entry-level equipment for instances while playing solo.
There could be enough quests with high enough xp and item rewards that you can progress from area to area alone (should be slow going, so there is always a strong incentive to group up with strangers who might become friends or kin), but there should also be at least one quest chain (could be clearly marked) in each "quest hub" that requires grouping up.
For the epic book questlines there is already a mechanism that allows to solo everything (that big buff like in weathertop), which is fine. I don't want the game to be completely unplayable solo, but it want it to be an MMORPG where collaborating isn't just something that is highly optional only for the top-end content.
It should NOT be possible to play an MMO's content solo to like 98 %, why make it an MMO at all then ? Could as well be a single player rpg with an optional multiplayer/coop mode.
The game has long since become too large and there aren't enough Players to keep "Landscape Group Content" to be a high amount throughout the entire game.
LOTRO is "top heavy" for Players. This means most Players have at least one or more Characters at max level. Then a lot at the lowest levels. Everything between is much more sparse.
Yeah...., lotro has far too many quests that are uninteresting and require too much back and forth. Especially the older areas could be "thinned out" a lot. All the "story" and background that is told via those quests could be condensed in fewer and more fleshed out questchains instead of "kill 8 bears" and "find that document from mob" and such, followed by two dozten mini quests with even more back and forth. Its really dated design.
Fewer but better quests that still take the player along everyhting of interest in a region, would be better, now it just feels bloated, not to mention the myriad of currencies....
Too much back and forth for Quests, again, is mostly just an "Early LOTRO" aspect. That doesn't occur as much and is gone starting with the Mines of Moria Expansion and beyond.
That change wasn't because of what you're saying. That change happened because the game was dying and nobody could find groups for it.
That's the reason it changed.