You will be prompted by Talana (you wish), that you might want to complete other quests in past areas that you have went before. Because Damian will strike with a poison all over the valley. And to the Island. You however my friend, will be a dragon by then and will fly over the area without getting effected by the gas. However, noone will survive this encounter in the pretty village. How does it matter when you complete a quest, you can't hand it over? Like that, quests will be closed for you if you don't complete them before entering the shrine. Game map itself is small if you compare to GTA maps, or the great map ov Oblivion. But it kept me busy for one day, each region at first playthrough. I hope this gives advice on how open this map is. Worse than oblivion, and far more better than other rpgs where you click the location and just "go". And I'm not "comparing" any of those games i've mentioned so don't come saying they aint comparable.

I haven't played the first game but what i'm thinking about the second game, about experience is: there is no respawn. Therefore, you should (not must) kill every creature you can find in whole map, do every side quests possible to be able to survive in the last encounter. There is also a skill which gives you some more exp every time you gain exp. But it doesn't really matter at the end of the line. So partially your smashing everything that the game is throwing at you.

Have fun.