The answer was a bit shocking and awesome -- Sapience came back with a massive list off the top of his head of changes made to LotRO because of demands and ideas by the playerbase. These included revamping mounts, housing, fishing, shared storage, new travel routes, being able to skip the tutorial, the quest tracker, UI customization, the Rift skirmish and a whole lot more. You can read the whole list here, and see whether it gives credence to Turbine's motto.
And if you ever wondered whether devs played the same game the players do, Sapience sets the record straight on that as well: "Someone asked if I play. Yes I do (and have for a long time, even before I started working for Turbine). My entire family does. Between us we have almost every class to 65."
[Thanks Lotro Weekly!]