It's 2012 and we are still doing countless one-dimensional quests with an incentive of sorts (gear, gold, stat upgrades), and it simply won't service anymore. It's time to look at quests as a form of art - a benchmark of how good an RPG really is, rather than a "means to and end" type of filler content that's only purpose is in forcing players to explore or engage in other gameplay mechanics.
There needs to be a complete shift in priorities. Quests need to be realized in their full potential.
How Skyrim handles questing
Every quest has the same formula. Go there, pick up an item or kill an NPC, bring it back and get rewarded by a next quest, item, stat upgrade or resources. It all sends a clear message - the developers only looked at quests as a method to force players to explore. Thus, Skyrim ends up feeling like an Exploration/FPS, rather than a real RPG.
If the quests are done right, players are encouraged to explore every inch of the beautiful world in order to find chances to exhibit their character's personalty. And each new playthrough feels unique.
The untapped potential within quests
A quest is a gameplay experience defining moment. A chance to bring the NPCs and the world alive. It cannot be downplayed into this randomly generated "content" that you do for their meaningless rewards.
The thing that makes role-playing games different form other games is that they should, ultimately, be replayable. Skyrim offers none of this. All characters will eventually end up doing the same quests and all the quests have same outcomes, choices don't matter and there are no consequences to speak of. This is wrong! Lazy! We are supposed to be playing an epic role-playing game (as advertised), not an Exploration/FPS game with swords and sorcery.
Playing a role is not about min-maxing and making a character "build" (what armor type he wears and what weapon he uses). It's about how he chooses to behave in the situations the quests put him in, and about dealing with the consequences. Old games, like Baldur's Gates (1998) realized this and used a primitive alignment axis (good/evil, lawful/chaotic) that would shift as a player would choose different reactions to different quests.
Quality>Quantity
One quest that has three possible outcomes is better than 3 quests with one possible outcome. It relieves a lot of pressure from the art department as the same graphical content, voice acting and story can be reused in the form of expecting players to revisit it during multiple playthroughs. Also, if you manage to get players guessing what might've happened if he had chosen differently, you have them much more emotionally invested within that character. Everybody wins.
Summary? TLDR?
+3 points towards Evil and the hateful, fearful reaction from NPCs is an infinitely better quest reward than Iron Boots of Peerless Magicka. Here's to hoping. Maybe next time.

