Actually, it's more that the events that lead to you saving the world tend to happen out of sight of the common populace, or are intertwined with the government(s) of each nation. Who then choose to keep things somewhat quiet(and try to kill you a few times), though you also join a shadowy shinobi-esque organization(The Tenshodo) which pulls your ass out of the fire a few times, along with spreading words of your deeds on some level.
Though, there's also what many would consider an archaic, "Fame" system. Do enough sidequests, and the resident fame checker NPC of each city/town will tell you what the people think about you/how much they hear about you. Not sure if it's changed much, but there's 10 ranks per place, and a lot of places overlap on quests.
The first mission set for the base game are all tied to the three nations, with Mission ranks 4 + 5 being nearly identical for every nation. Those being, find the Magicite the Beastmen are hoarding, and then dealing with the Archmage at the seal of Fei'yin, finding the seal defunct, and then dealing with the revived Shadowlord.
Following that, is Rise of the Zilart, which presents most of its story up front, with the inbetween quests taking so long(well they used to, now they can be done relatively quickly in a few scant hours) that you forget the plot hooks by the end of it. Most of what was gained from RoZ was gameplay oriented (Loads of new zones, 4 new jobs (SMN, NIN, SAM, DRG).
Chains of Promathia has a much more cohesive story mechanism with shorter chapters and more focus on the CoP characters therein. It was considered the best expansion for a long time, and most old salts will still tell you that it's the best. The characters within it are all from out in the woods sorts of places, and most of your actions are hidden from the public by the Duchy of Jueno. All of your companions respect you highly, but at the end they all go to their far flung corners, their time in your adventure done. At the very end it ties into RoZ.
So at that point, if you'd done all the story while current(which due to horizontal progression and sheer difficulty back in the day), then that's when you've become a big damn hero.
Enter Treasures of Aht Urhgan. Using your connections in the Tenshodo you gain passage to the Near East, and go to a nation that seems to be modeled somewhat off of the Seljuk Turk empire. There, you have to make a name for yourself all over again as a mercenary, because they don't know or care about your deeds, and other nationalities are barely recognized there. In the doing of your deeds, you find out the Empire's dark secrets, which include genocide. Incidentally, you fall in with royalty and espionage agents from other lands simultaneously, and save the Empire from itself. If you follow up on the Odin sidequests, then you win the heart of Empress for the wrong reasons at the cost of giving your soul to Odin. But of course, Brandy is a fine girl, what a good wife she would be. But your love, your lady, is the sea. Errr, adventure.
Where next could you be zero to hero? Why, in the past, of course! Enter Wings of the Goddess. Complete with not just time travel, but alternate timelines and multi-verse theory!
Which leads into the Abyssea arc, which killed the game for most old salts if they played beyond ToAU. Save alternate Vana'diel wherein the you of that world failed in Chains of Promathia!
After that comes Seekers of Adoulin. It's kind of like Treasures of Aht Urhgan 2: Pioneering Boogaloo. Instead of a mercenary, you become a pioneer! Tame the wilds of Ulbuka! What crazy shit will you find out there with its insanely powerful monsters that are literal manifestations of nature?!
Then comes Rhapsodies of Vana'diel, which was intended to tie everything together in a neat little, "You're a big deal" bow. It was kind of a love letter to the game itself and the niche community that kept it alive, and most people considered it a satisfying ending, even if the characterizations of the previous casts coming together and what not were a little off kilter.
There's now the Voracious Resurgence, but I haven't been back to see what that's about. Yet.
But uhh, I'm gushing and rambling. The real reason that a lot of NPCs won't recognize you in the quests, is because the quests weren't programmed to account for progression. There's far too many of them, for one thing, but for the other, the game's progression used to be held up by leveling for so long, that it was quite uncommon for most folks to have done the multiple quests that certain special NPCs should recognize you from.
Most of the mission quests feature casts that are independent of each other.



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