The equipment actually begins to look cool in the higher levels (seeing Elites with Lv. 50 gear makes me go woah). And after you get out of Archet, the areas really do open up and take on variety. Theres the Marsh area, the Woods and Bree-Town (which seems to be the Hub of LOTR: Online). Thats just the first areas too, theres still the Shire, Misty Mountains and The North.
I've already ran into some Southron foes (a couple were Half Orcs). They would have owned me though, being a couple of levels higher than me.