I don't like this method. I am in full favor of an intricate plot that the PC can be part of (preferably is part of), but as for locations [and encounters] I would much rather the game have some major locations (like this dungeon with a Lich in it) that are never pushed, prodded, or presented ~at all; Such that the PC might stumble upon them, or go looking for them, or even be taken to them (by force... IE. abducted)... but that the Player can play through to the end ( Or at least a long, long time in TES :meh:), never having found it at all, not even once ~in years of play. Then perhaps they find it one day and its a really cool surprise. I have even found things in Fallout 2 that I missed in the eight years prior.
* Problem is that game developers for a single player game should [ideally IMO] design the game to assemble the world and uniquely generate any puzzle answers upon install, (so that every player's install is different); and have the game pick only a percentage of the whole for the world it creates; (Meaning... say 80% of possible areas and encounters, the rest maybe popping up for a different PC).
** And for those that actually have interest in Achievements, such areas would provide some that no one else can get without discovering the places on their own ~if they are even there. :shrug:
I think you might be misunderstanding what I am talking about.
When developers spend the time to make some sort of large set-piece location, like a town with a distinct look, or a named character with a lot of backstory, they're going to want to make sure that they don't have to do that 800 times over in case the player locks himself out of the one plot point that would have happened at that location, or the one place where they would have had a conversation with that character.
That is, right now, whether you side with Stormcloaks and lock yourself out of the Legion plotline, or vice versa, you still get to go to all the towns or see all the people. You just have radically different missions when you go there or interact with them.
While it would be, perhaps, less than ideal that, if you were forced to choose between three different factions, and regardless of which faction you chose, you would have to go to get whatever random mcguffin from a specific dungeon to bring back to your chosen faction, that's the sort of thing developers do to just make sure that they can focus on developing a few good dungeons, rather than copy-pasting generic ones.
I talk about this sort of thing specifically as a counter to the argument Gungho1 made about it taking "1 TB of hard disk" to play a game with multiple divergent plotlines that allow for player choice.
That doesn't mean there can't be locations that exist purely for the player to have one more cave to explore, but that there
are ways to use the same character or location in radically different plotlines.
As for dynamic puzzles, I don't think it should necessarily be at install - why not be at a point like character creation, so that a new playthrough in a murder mystery will have a different killer be the perpetrator? You could even use dynamic play elements to cater the mystery to the player if you wait until just as the murder is taking place to stack the deck on the perpetrator to be someone more significant to the player - by either making the sort of character that the player gets into conflicts a lot with be the perpetrator, so as to make a more perfect villain, or conversely, to make someone the player has made friends with be the killer so as to introduce moral dilemma.