Take into account the editor, which could probably create utterly massive worlds for RPers to establish their own story, starting from scratch. I would not be surprised if at some point not long after release, there is an entirely new game world that people are using to RP in.
As to whether or not RP is possible? I honestly think it is. Aside from a myriad of scenarios which you can create as time goes, as well as political intrigue between nations, various in-game events, etc., the game does lend itself to RP through the quests and the player avatar in game.
Let's be honest - RP doesn't usually require dozens of skirmishes each turn. While I'm sure that the combat aspect will be anything but negated, I would expect more along the lines of epic battles rather than a flurry of tiny fights. Would make an RP game more...interesting, perhaps. Not as cutthroat on the surface, but it could easily go very, very deep.
Arise, like the glorious phoenix!