Town, outside, and dungeon represent decreasing levels of safety. In most games, players want a clear indication of how much danger they are in just walking around. Some games, like Dark Souls, do blur these lines. I think it would be easy to go overboard.

This strikes me as one of those things that sounds better on paper than in practice.

I believe the grand vision for Tarkov was for basically the whole world to be outside/dungeon. Kinda sad they didn't have the technical skill to pull off open world. That would have been an interesting gaming experience.

I want events to occur while I'm down in the dungeon. Maybe a neighboring village got attacked and now it's in ashes and down trodden. Maybe a castle is being besieged. I want a "play your own adventure" where the story just kind of happens. No main plot other than maybe certain events happening at a specific time. Games today are too linear. Even "open world" games. They zone it out so there's a progression, go to this area to xp, then go to this area, then this area.

For once I would like a Skyrim experience but where you're given free roam to unfold the story as you see fit. Crafting your unique story in the process.

I also don't think games should cater to safety or make towns "safe" from other players. I think the games should allow crime but also have punishment for it if caught by the NPC police or Players. Some of my best memories are from a public execution of a murderer on Ultima Online back in 1999. We had like 100 people gather (on a server that supported maybe 2000 tops).