>> Many of us don't want the sort of streamlined experience you're talking about. If I'm deep in the dungeon then being able to find my way out safely is part of gameplay.
most games have automap and a compass with the next quest waypoint always showing the exit, so no "finding your way out"
most games have hard coded spawn points that don't respawn for a while or at all, and do not have periodic random encounters, so "safely" is a given.
>> I might have to make a difficult decision between pressing on or turning back
you've already decided to turn back, cause you're mining the dungeon for loot, and you've reached max encumbrance - time to go to the store and sell it all off.
>> and maybe between ditching some loot in order to be able to continue
you've already passed that point. you dumped the junk and kept the good stuff. its time to leave. but you're half way through the second or third level. going forward, you just have to kill more stuff, loot the bodies, and immediately drop everything. you can't just smash and grab and go. one soul gem fragment and your over encumbered. so now you kill, loot, drop - paying attention to what will be easy to find later (big stuff like armor), and what won't fall thru the ground mesh due to whacked physics (hmm... maybe dropping armor in oblivion's not such a good idea...., or purified water in the lobby of the 38 casino in new vegas. it respawns at the door, rolls, then falls thru, again an again).
while soldiering on, or dropping all loot then continuing is one strategy, you're still left having to come back later and walk to pick it up again. plus more time futzing with inventories. time and motion studies: the most time efficient way to get loot to the store is to kill, loot, then leave, do not drop at any time anywhere. you just waste more time in inventory menus. and extra travel. and more load screens!
>> Same with exploring - if I wanted discrete encounters I'd play a game with a world-map mode rather than a continuous world. I enjoy scanning the horizon to see where to go next, climbing the hillsides to get a better view, feeling more immersed because it takes time to get from one place to another.
i can get into that too. but i come from the flight simulator demographic. sometimes you just want to accelerate time and get to the action. games have this capability, but don't typically let the user use it, or limit how much you can accelerate the game to the point its little better than real time.
there are times i want to explore, and times i just want to finish some quest. when i want to finish a quest, i should be able to call up the game map, click on my destination, and it will move me towards it (via fast travel) until i encounter something (IE come within X of an un-triggered spawn point, or undiscovered landmark). at that point it should stop fast travel, and let me deal with the encounter. then i can click on the map again and continue my journey. that would be so easy to do, and then you would not have to manually a walk to undiscovered locations when you didn't want to. and when you felt like exploring, you could. Caveman does this.