Looked like combat to me. Obviously low AI, but things were interacting with mobs.
the instanced question is based on the fact we didn't see the massively part of the MMO
There's always a question of whether you will have too many sculptors chipping away at the same rock, all trying to model something different. There looks to be a limit to how much you can hurt the environment, but I do want to see the world in a massive state and how they deal with the problems of hundreds of players trying to mold the world at once.