Sorry man, stories in old games were MUCH better, the plots were much longer - i don't even have to go to SNES. Fallout New Vegas is a prime example of how a game can play - on same engine - I believe that last good game from Bethesda was Morrowind. And please, seriously Fallout 3 is supposed to have deep story or dialogue? Compared to fallout 1 or 2 it's a very poor attempt (note. I have finished Fallout 3 and New Vegas).
Also character customization has litte to do with game depth - i could still argue that few Final Fantasy games had way more customization. Hell even bethesda's Daggerfall was way more customizable than Fallout 3 - also Fallouts 3 story is a very small main quest on rails as you have put it. It's really weak compared to New Vegas - I bring this reference multiple times to show you how bad fallout 3 is compared to New Vegas on same engine.
The attitude you present here is precisely the reason why developers want to use kickstarter to fund their games compared to publishers - they have the same worries about how games are.
Also you raised some interesting points: - What's that, an entire kingdom capital has 6 single story buildings and a castle with 10 rooms?
- Most of the NPC's have 1-2 lines of dialogue with NO interaction with the PC?
Agreed, but i fail to see how abundance of dialogue options are supposed to make up for good gameplay? - it is in reality a lot more complicated. Bethesda style sandbox games got really dumbed down - the plenthora of options is really a meaningless facade.
Take mass effect as an example - its a shooter with fairly linear gameplay (although it manages to hide this fact well), but it tells a really really good story - It is not a sandbox game by any means but its really good - because it managed to deliver great experience overall.
This is what old games did really well, they delivered massive gameplay - and this has nothing to do with graphics, choice options - its the experience that counts - and for me personally Fallout 3 was a very poor experience - your story might be different obviously.