The single players instances in Drago Bash are very much like the personal story quests. And work will to create entertaining story.
So why can’t this be done all over the open game world? To give players a reason to revisit Renown Hearts. As little mini stories not related to the main personal story.
That provide some traditional style quest, and loar to each area.
I would call this idea “Mini Story Instances”. Because they are unrelated to the Personal Story. But do tell small stories of the area they are in.
Doing mini “Mini Story Instances” could also create rare DE’s in the open world.