To make it feel alive they just need to make it more like a real breathing and living world. More NPCs that wander around, maybe have some in the forest looking at some fungus and talking about it, or NPCs from the city states going on a patrol to make the streets feel save. In the wild you could have a big amount of small critters and other small animals going on with their lives. Have the herbivore animals and monster be passive and in bigger herds. Use fates not to spawn some random monsters but spawn some carnivore that will attach the grazing herds of animals. So make it less "monsters everywhere that will kill you on sight" and more of a world where farmers and other people can survive. So no random spawning tree of death that will attack anything that walks on the street. This way you will have a landscape that does not look like a beautiful painting but like a beautiful and alive world.
Give us riddles in the overworld (maybe each zone having at least one) that you need to find and solve or even jumping puzzles (but better thought out than the Kugane one). Yes people might look at the solution online but this is a decision by the players themselves. Or give us lore items that we can find all over the map at random places. Maybe have an item that will show us the general route but you will still have to find it yourself. Picking it up could either give you some lore of the zone or it could be part of a collection that will give you items or knowledge after you complete it. Nothing game breaking and nothing of a must have but at least something that could be done in the zones. (And please no huge amount of RNG..I am looking at you TT) I am still kinda surprised that a game that focuses so much on lore does not have some kind of way to gather it ingame. They could simply leave books at places with lore in it, that will unlock the description in a ingame lore section (thus no inventory space lost). They could even give us bookcases where we can store this in our house and click on it when we want to read them.
Have random daily quests that are not shown on the map but that you have to find by looking all over the zone. It could be that you find a certain item that is marked when you get near it and that will give you a fetch quest. Or some monsters could be marked that will start a quest to kill a certain number of them. Again nothing ground breaking and no must do but at least a way to shake up all the fate farming in a zone and this could give people a way to level up other jobs after they have done all the normal side quests.
(And yes all of these suggestion came from me playing rift, I am just a fan of its overworld)