I think there should be a variety of "natural" directions and subtle indicators instead of the modern waypoint for everything method.
Sometimes directions will be vague, other times specific. For example, in the cities, there should be some kind of street and numbering system. That way they can be both specific and require the player to look for them. Out in the wilderness, directions can reference landmarks or general areas.
A huge part of the fun of these expansive RPGs is using your common sense and wits to orient yourself and give the world a true sense of place.