I think in terms of traversing the world it is. Those random encounters just sort of create a challenge or pique the players interest whilst travelling. But the interaction is minimal and doesn't relate to any quests.
I think it's a similar argument to GPS in open world games like GTA. It certianly makes things easier for the player - and an argument can be made that they don't really get to know the city as well - but the majority of players are going to be consulting the map often - particularly as these games get much bigger. It keeps players in the game and keeps momentum going. I know Arkham Knight would have been even more frustrating if I had to keep checking I was going into the right direction in my Batmobile. I think when you've got worlds this big things like GPS and map markers create a smoother gaming experience. The real challenges lie elsewhere but I don't think traversing the map really needs to be one of them.
I haven't played Fallout 4 but the Mass Effect like dialogue system, on the other hand, seems like a step away from what makes Fallout a unique and immersive experience. It's not an inherently bad system in itself but it seems to be replacing a more interesting system that was almost a highlight of the franchise.
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