To begin, I just want to describe my experiences with DDO. I initially saw it from a friend in the dorms who was playing the beta. He said it was ok, but was more focused on adventuring and dungeon crawling than WoW. His words, not mine.
Later, during a fit of boredom during summer of '06, some friends (2 others), myself, and my sister (17 at the time) decided to all try it out. We ended up leveling up two sets of characters to level 3. However, we never got past that point, because of the perceived "grind" we all felt, after all, we weren't getting more XP, but the amount required to level was almost double. We also felt it lacked crucial MMO elements. Particularly my sister, who had never played D&D, was frustrated with the game and choosing feats and such. **I personally love this aspect of the game - but some "rigid leveling" options would probably be good for those who don't. ** We decided we were going to buy the game, after all, I was excited about making a Drow caster, the extra SP would be worth making a caster, who at the time, I didn't enjoy. However, Drow required 400 faction to unlock. **None of us ended up buying the game.**
A year later, during a similar fit of boredom, three of us (my sister declined to participate this time around) picked up DDO again. This time, being much more savvy, we leveled our characters to 6, and unlocked Drow during our free trial. I was also under the impression the level cap had been raised to 20. We all liked the AH. One of my friends decided not to buy, he's very much into solo-ing and just killing monsters in a camp, he's back with WoW. The other two of us bought. I am now playing my Drow and would like to roll a couple other characters. However, the 32 points characters are just too tempting, I haven't been able to bring myself to make a "gimped" character. (Argue all you want, I've played too much D&D to get over it.)
This next part is merely opinion...
I'd say that DDO definately lacks a good newbie experience. As soon as a character leaves the wayward lobster, they immediately are confronted with insufficient help. If Turbine wants DDO to attract more people, they need to stream line the first 5 levels, and make "auto choice" leveling options.
Next, I think the "unlocking characters" bit is a huge deterrent for many players. If it was somehow retroactive (for Drow, maybe you could play an Elf, and once Drow were unlocked, you could find out your "true heritage" and for 32 point characters, they could easily call up your original stats and allow you to distribute 4 more points under the same guidelines.) Finally, the "unlockables" need to work across all servers. However, a better option would be **get rid of the unlockables entirely** Give some other reward for high factions that are character specific. Here's a good example (200 faction, 1 free feat respec, 500 faction +2 free skill points, 1000 faction +1 stat point, 1500 faction +1 Action Point, 2000 faction 1 free feat, 2500 faction +10 hp, 3000 faction +10 faction, etc. etc.) See how easy it was for me to come up with a much fairer/desirable reward system?
Finally, quests need to be a) unlocked on all difficulties (barring certain "raid" dungeons perhaps) b) balanced c) make the optional stuff worthwhile. If you look at LFG, 95% of the groups are going to cherry picked xp quests or raids. CO6, Delaria's, The Kobold's new ring leader, and West are all prime examples. The reason all quests should be unlocked on all difficulties is because, some quests are naturally going to be a more "desirable" xp rate. However, if they are unlocked on all difficulties, the faction combined with the +50% xp from elite will make them worth doing *at least once* at the correct level range. Optional stuff should be worth something more like 10-25% of the quest's total xp. For example, if a quest has 3000 xp reward, and a short optional quest, it should be worth 300 xp, and if it is a long optional quest, it should be worth 850 xp.