I would LOVE this. Especially if the war of the ring or other plot was on-going and you could participate as you pleased, potentially shifting the balance one way or the other. The idea of an open world RPG where the world exists and evolves with or without you is my dream. Mount and Blade is almost that, but for being too army/strategy/overworld focused, and the lord of the rings mod for warband had me hooked for a long time before the limitations got to me