Random Encounters feel like they are missing. I do not look at it in any other fashion. Skyrim and most RPG's take advantage of this. It makes the world feel lived in like there is something random going on outside of us. Random encounters can be anything. Skyrim has like something new happen every so many feet and a list of over 100 things to choose from that can happen. Every other BG had this and the games that tried to emulate it's success.
Its not a question of "Do we need it." it is a question of "how do we make it refreshing new."
I think the best way is to tie is to not only player choices but character creation and party makeup. So some things are more likely to happen if I am a certain background like criminal. (Bounty hunters appear in the zone)