The sidequests in this game can be described as:
Something similar to how other MMORPG's approach quest content, but worse.
Why worse? It's not about the principles of the system (what it is meant to accomplish), but how the player perceives it.
A) It looks like a normal MMORPG quest.
B) It plays like a normal MMORPG quest.
C) You do not get experience or skill during the quest nor afterwards, unlike normal MMORPG quests.
So, the common MMORPG player will see the quest as inferior to other MMORPG quests. That is something that you, the developers, ought to change. We all want this game to succeed, and I presume you first of all, so would you agree that to achieve the best results if the player doesn't like something it should be changed?
If we agree, then I think we can talk about how to accomplish this in practice. I am confident that you know more than I do, but let's think of these suggestions as a guidelines only, from the perspective of a common MMORPG player such as I.
Depending on how we perceive the problem, we should strive towards either changing A) and B), or C) (as mentioned above).
In other words, you can either develop the quest content in a way that the normal MMORPG player thinks that the quest does not look nor play like a normal MMORPG quest (either through different system or vastly improved quality beyond normal MMORPG quest) or you can develop the quest content in a way that a normal MMORPG player does not see a difference between these quests and the common MMORPG quests (by allowing the players to get skill points during it).
But which approach would work better for this game? As seems to be the case, these sidequests are not meant to be the primary source of skill points, hence the term "sidequest". However, if these sidequests do not differ from the normal MMORPG quests that are the primary source of experience in those games, there is a dilemma. If they are not made to fulfill the same purpose (primary progression), why would they be similar?
And more importantly, there is the quality vs. quantity argument. How many sidequests does this game need, and how much should they differ from the "primary" content to justify their existence? Is more the merrier? Is less more?
You may have already realized which approach I would suggest you to take. Personally, as we're talking about sidecontent the quality is more important than quantity. You can solve A), you can solve B), and you do not have to alter the C) if you do not want to. The important question is: Do we need 20 normal MMORPG quests or 3-5 phenomenal quests per patch as our sidecontent? Do we need 20 normal MMORPG quests to give us other ways to gain skill up, if they do not differ from the Guildleves in any significant way?
Either way, the point of this thread is that you need to choose. A) and B), or C). Either should do, but the choices may not be equal in the context of this game. If you choose to do nothing, no one will be happy. If you choose to do something else, I will wait in anticipation to see what you have in store.
I guess the community can also give their opinions regarding the subject.