Maybe I'm missing the exact nature of the question, but I like my fantasy games to be "realistic." What I mean is that, despite all the fantastic events in the game (magic, flying ships, ancient civilizations, techno-wonders, etc.) I like it to be grounded in a strong context of realism. For instance, if magic exists in a world, I want to see people react and use it as though it is a viable force - everyday sort of things. If there are half-elves, it needs to be explained why a human and an elf would see fit to mate, the races views on the subject, and it needs to carry into the atmosphere of the game. This is some of the reason I'm kind of fed up with many JRPGs. There's never any context. Sure, you can call a meteor down on an enemy's head (doing less than enough damage to kill it, often enough), but people just scurry about like such things are everyday events, even when no one else exhibits the ability. Or everyone can do it, and no one uses stuff constructively.
Elder Scrolls games sort of do this, but even then it's kind of weird. There are usually societies built around the instruction and practical use of magic, which makes sense, but it seldom seems to get used beyond combat and potion-making. Morrowind had something I thought was brilliant: mages guilds charging to teleport you around. If I could teleport things, damn right I'd make money off it.
Roaming beasts and weapons are other problems I have with games. Why does one area have drastically more powerful stuff than another area, yet exist in some sort of power balance? If your town has been fending off level 75 dragon-things, shouldn't you be able to dominate that scenic little village with level 5 rabbits running around and causing havoc for the populous? If there's one thing I like about MMORPGs (really, there's not much more than this one), it's that cities tend to be cleared of powerful creatures, having only minor nuisances around - which makes sense. Who wants to live around deadly-powerful bringers-of-destruction?
Frankly, I think levelling in RPGs is a concept that's well passed its day, too, but that's more of an RPG rant and less a fantasy/realism thing.
So, as I've now sort of illustrated in a fairly confusing fashion, I like games in a fantasy setting where the fantasy elements are worked realistically into the game. What would people really do and be like with such powers around them? That's the question I want designers to ask.