Tapewormz, you assume that one server runs 1 application with 1 open connection to a limited 255 users.
What if your server opens up 2 connections, infact DBP can handle 255 if my recollection/understanding is correct, what is more - what in the hell is stopping you run more than 1 program at a time on the same computer? Windows opens up nearly 10 just booting ! The only limitation is bandwidth, which is the same limitation no matter what tool you write the game with.
With regards to dynamic content that is just a matter of opinion.
I recently quit playing Everquest after 3 years. Yes I was high level, yes I had pretty good gear, and yes i've seen every zone in the game and pretty much done all there is too see and your right, it was just a hack and slash - only more primitive. That is not at all why I played the game.
If your appreciation of MMORGs is from a purely gameplay perspective than you are missing the point of playing an MMORG in the first place. If you want gameplay, stick to single player games (although they are even worse for totaly boring static content, linear gameplay, and isolationism than MMORGs are).
Single player games will invariably always outperform multiplayer games for content because all other factors being equal they do not have the drawback of internet connectivity. Instead they offer a community. Ask ANY MMORG player why they play the game, and it wont be because the gameplay is little more challenging than dominoes. Ask ANY ex-MMORG player who played for more than the trial period as to why they quit, and you will get one of two answers: I found a better game; or I could no longer justify the cost (RL issues).
That does not meen MMORGs should be as linear or static as they are, infact I yearn for the MMORG that breaks this mould, just that the MMORG that invests heavily in redesigning the genre just for the purpose of reinventing the wheel needs to keep track of what the whole genre is all about - communication.

God created the world in 7 days, but we're still waiting for the patch.