I think that the lack of conventional towns and NPCs in FFXIII hurt the overall experience,

HOWEVER

I don't think that it was a completely bad idea for SE to give it a try. It was an attempt at a new way to tell a story, something different from the bread and butter RPG method. The lynch pin of the whole 'FFXIII concept' was to create a world where you felt isolated. Having your characters actually be isolated was a bold step to this end.

Though I don't feel the concept worked in practice at all, I do respect SE for trying it.

EDIT: The dog looks more happy than sad.