I think gear does need to progress to some extent. After a bit in FFXI, when I got geared up, I wondered what the point of continuing to try to seek out gear was, since it was all roughly the same strength and took up oodles of space in my inventory. Yes there was storage, but you needed full sets to use it. While it is good for you to be able to use armor for a while, at the same time the game should reward players for not resting on their laurels.
I'm all for dungeons with a bit more depth, but at the same time I have very bad memories of just sitting there, for hours, doing nothing but staring at a spot where the group MIGHT get an NM but oftentimes didn't. This just wasted a few hours of their lives for absolutely nothing. This was especially bad since when the window approached you'd be yelled at to "focus" and couldn't even talk to pass the time. That was not fun at all, and if instances completely eliminate ever having to experience that again, I'll be more than happy.
If the boss fights are challenging but not ridiculously long (you know which boss I'm thinking of when I say that) I'll be thrilled.
