#1 for me. Former game dev and we experienced the exact problem Obsidian is describing - the game was leaked before release. I prefer to get the game the same day as everyone else, along with my pretty box.
I don't think allowing ease of entry/exit would make it much shorter. I'm thinking of DA:O's Orzammar level, which was broken out into four/five parts, relatively easy to exit to level up/resupply/etc., yet still felt like a giant area.
Actually much earlier. First fiction attempt I know of was in the 1800s, but I don't remember the exact details despite having written a paper on it...
"Herland", perhaps?
Sound. Even the best synths can't reproduce the same exact quality that a live performer/instrument can.
True, but live recorded music costs $$$ and takes a lot of time to do right.