Thank you for this post! I agree with most of your points and would like to add some of mine:
As a gamedesigner I would like to throw this link about achievement design into the pot, which is really helpfull and granting some insights on good achievement design.
In my opinion the Living Story is a tremendous step into a vivid evolving MMORPG world and I highly appreciate how ArenaNet ‘dares’ to dive into this unknown realm.
I feel like they are getting more confident with every monthly rollout and this is a good thing. I agree that there should be a greater, permanent effect on the game world, but as far as I can tell this is something we are already heading to.
I totally go with your problem with immersion, especially regarding the molten alliance stuff. I was really hyped and looking foreward for the armies emerging from the underground and battles agains new technology and tactics, but then I felt like the whole thing got turned down a bit
I´m interested in how fast the things will evolve with the two week update cycles and I am totally looking foreward to it
Best regards
floAr