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I also disliked that approach for most of Dragon Quest V. Monsters have no personality and no effect on the story. I want to see the journey of actual characters with differing abilities whom I can develop as the game progresses. Leaving one monster out of your party in favor of a new, stronger one ruins the experience for me because I tend to grow attached to my characters.
A game that's RPG is a game where you can develop the character or characters. In some games you are able to control the development in various ways what your character will be. And it also means a game with fantastic storyline that affects the game. But if the game lacks the character development it isn't an RPG. Getting to interfere with townspeople or such in unique ways, now that's just a bonus that tags along.
I just can't understand when action packed game with few ways to develop your character is considered as RPG. For me Borderlands is good example, there's not that much of a story...
Thus Fallout are RPG because you can develop your character in various ways. RPG in way, you follow the story where a bloody wuss gains experience and learns new things. Gets so strong that s/he's finally able to defeat the ultimate badass. You interfere with people and their lives. You can choose to be bad, good or then you ignore all other people's problems. You can help people, you can kill people.
Wasn't Fable like this too?
Therefore an ultimate RPG.
Final Fantasy series? You're always the good guy stopping the doomsday.
For FFXIII-2 I'm not having high hopes for this, FFXIII was just such a disappointment so I'd just say move on to the next one, don't try to make it up with a damn sequel.