Nah, games like LOTRO put the world and player experience first.
You explore the world because its so varied and its less like playing the game.
There’s still game loops.
Yeah... it's easy to conflate loops with grind in the context of Elite, because this is something endemic to it's design. I prefer to split it out into activities and repeat value though.
"Game loop" doesn't exclusively mean "do the same thing over and over".. it's just the progressive iteration through a game... whether it's quarters of a basketball match... balls in a pinball machine, lives in sonic or mining in Elite. Pongs game loop was "get the ball past your opponent to score a point", but it was hardly known for being grindy.
T2 NPCs using the on- foot Odyssey contacts is one i repeatedly espouse. A good (imo) game loop looks like earning rep with a variety of these NPCs through various activities.
Why? To build a network of contacts who you can spring for services at short notice in a multitude of contexts... maybe i have notoriety and an inconvenient federal bounty, but i curried favour with a federal agent who can clear my name for me
this time... meanwhile the Imperial agent i work for (instead of any pleb Imperial faction) may randomly offer me an valuable opportunity to get dual engineered fittings or similar, provided i maintain high rep with them.... but then you get an offer from one contact to take down the business of another contact of yours, for very good rewards though. Jeopardy!
Game loops are always best when the reason to do the game loop is to do the loop... not for some external reason unrelated to the activity.
But grindy T2 NPCs would be "get allied with 20 contacts for a 2%discount in outfitting"... which is unironically PP2 in a nutshell.
tl;dr game loops don't have to be grindy. Just many implementations are exactly that.