"It seems to me the only new form of this gameplay any one is offering is the "instanced" dungeon or play area."
Agree, however, Mythica had a few other differences in the gameplay. For instance, you had to attract followers to gain power, either by being kind to them or by being ruthless. Sound familiar? Reminds me of Black & White. And although B&W sucked, the idea was interesting.
Mythica also wanted players to feel like gods. You didn't start out killing bunnies, you started out as a god with godlike powers. Mortals should fear you. That's what they were going for. The game was also built around norse mythology, not elves and fairies as so many believe. It also sounded like they were going to have some gore in the game (decapitations), layered armor, etc. Lots of little eye-candy additions.
Anyway, I'm disappointed that it got cancelled. The MMORPG market is indeed saturated, but Mythica actually looked different.