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The game used to be so hard it made players quit because of that.
now, the game is erally easy, drawing a lot more players than leaving. So I'm pretty sure if you were managing the game, you'd probably do the same based on profits.
People don't even do story quests in this game. All they care about it endgame stuff doing hard dungeons, gearing up... just like what most MMORPG players do.
Sure, there are players who prefer to progress in story, I did it, and I completed all of the quests in game. It's not hard at all, just takes too much time.
You can always go back to those dungeons even if you are overleveled. Just go to a specialty merchant and buy a teleport scroll if you haven't been there at all. You will get a teleport route to it at the city nearby or in the province.
Quest flow assumes no boosts, dungeon xp, or rested xp. Since you'll be using some or all pretty frequently they've made the yellow quests available to do or ignore, depending on how much xp you need to advance the story quests. Yellow quests only add a small amount of story and you can skip nearly all of them. At 60+ they get phased out almost entirely and if you solo 5man dungeons you can ignore them at as low as 20. Quickest way to get back on the level curve is to ignore yellow quests until they're the same level as you and just do story quests.
Keep in mind that despite its recent release on steam, TERA is an old game. As with any mmorpg of its age the focus is to just get you to endgame as quickly as possible. Once there the dungeon/raid system will make more sense.
No IM for low ilvl dungeons because you're expected to use lfg, chat systems, or grab people waiting at instance ent. to fill parties. Or just solo them. And to keep the IM list only showing things you need a group/raid for. Dev direction type choice in that since many are uncomfortable with interactionless grouping.
it did not use to be that way it used to be lots more quests n lots less exp and BAMs used to be hard ect they made it easy to appeal to more Free 2 play NA players who like exp handed to them like wow. they even cut out big chunks of the story from the game.
Or come back when you are leveled more.. which makes easy to solo "group mode".