MMORPG is an RPG that is MMO.
RPG as a genre is defined as "game that separates the skill of the player from the skill of the character(s) they're controlling". In the original Fallout, you order your character to fire, and depending on THEIR skills they hit or miss. In Fallout 3, you're aiming the gun yourself and depending on YOUR skill you hit or miss. Your character's stats/skill still affect the damage done, and so it is well known that Fallout 3 is an "action RPG" rather than full blown cRPG. Not that there is something inherently wrong with action RPGs, but if you're doing it by the book, action combat shouldn't exist in a real MMORPG.
Tab-target("not action combat") also puts significantly less stress on the servers, allowing for higher player counts. Action combat requires much higher server tick rates and processing power and is usually very ping-sensitive. EVE Online (in)famously has server ticks of 1Hz(once a second) and allows for battles involving thousands of players simultaneously. TERA, the flagship of action combat MMOs, chops the entire game into channels of at most 100 players each. Trying to put action combat into an MMORPG goes both against RPG and MMO parts of it.
Once you're set on tab-target combat, this automatically puts your camera in the (pseudo)isometric position. Tab-target and over-the-shoulder TPP don't mix because many attacks will not be visibly connecting as they're decided by hit chance RNG rather than the animations themselves. All TPP does is push the worst attribute of your combat system up in everyone's face. In addition, (pseudo)isometric camera creates a sense of detachment from your character that makes such "air swings" easier to accept by the player. No one was bothered by "missed hits" in Baldur's Gate, while in Morrowind the same "missed hits" seen from first person perspective were almost game-ruining.
(pseudo)isometric camera makes a whole lot of things technically easier. For example, randomly respawning enemies can randomly respawn off-screen rather than popping into existence right in front of players. It also significantly lowers the system requirements without having to resort to stupid "tricks" like turning the game into a cartoon. Being able to oversee the battlefield from above lends itself to more tactical position-based gameplay. You can even go as far as make the game outright grid-based(Ragnarok Online did this) and no one will bat an eye.
Finally, it goes without saying that any kind of instanced content limited to X amount of players goes directly against the very core of Massive Multiplayer Online game, so you can take all the raids, battlegrounds, arenas, "storyline content" and other nonsense and throw them into a fire where it belongs.
MMORPGs. Super simple stuff.
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