Joystiq recently had the chance to speak with several developers about the future hurdles facing storytelling in games. Two members of the MMO industry were in the mix, and their views on how to tell a story in future MMOs are each a very focused snapshot at how City of Heroes and Guild Wars each approach story. With City of Heroes, it's not about the level of tech, but about how much the audience cares about the story. As for Guild Wars, the opposite seems to be the case: it's about learning how to tell interesting stories with new tools.
We don't think either method is wrong, as both views are a product of their origin. Namely, of what the developer has learned and their audience has demanded. We're certain that both developers will continue produce story within games that evoke unexpected responses from us, for better or worse.