I gotcha on the townspeople, one my favorite parts of game design is giving the npcs little personalities and sidequests.
I'd love to take a crack at some of em.
1. Backstory (I think we have the full story of Rasquel somewhere in these pages, I might have added it to the outline page)
2. Town (I'm assuming this is the big ditch in the ground, we have a main idea of it, we just need to flesh it out a little)
3. Mini-dungeon (We should give the option to skip it maybe, but the players will say, "It'll give us a chance to warm up before the real fight")
4. Cutscene to villain (Oh, so it's still going to have cutscenes and stuff, but it's still an mmo)
5. Villain Castle (I think we've got this down)
6. Final Boss (Should we actually let them beat the boss? Or does he use his special attack?)
7. False End & Layer 2 (Is this where the game ends?)