I can never make these points/steal them from elsewhere enough, so I will here too.
I'm never going to say it's the pinnacle of production or game design or anything, but I still love it, much like some movie buffs love b-movies. If it was completely unplayable it would be one thing, but the combat is enjoyable and the world is big and fun to just run around in and see what kind of trouble you can get yourself into.
Now people would say that time is better spent on something like Oblivion, but honestly I've tried to play Oblivion on at least three occasions and well...I ended up just bored to tears. As gorgeous as the world is, Oblivion can be a very stiff and stuffy game, especially to people like me that can be pretty cynical about genre pieces and big production games.
Two Worlds, at least the English adaptation, knows exactly what it is and what it's invariably ending up in the shadow of, and it makes the most of things by hamming it up every second, whether it's with the hilariously bad voice acting and script or the ability to grotesquely overpower your weaponry early on so as to break the game. And in spite of all that it still manages to be fun for those that know what they're getting themselves into.

Couldn't have said it better. Although frankly the game doesn't even feel that "B-movie" to me - but as I've said, I never witnessed the English voice acting. But even disregarding the main story (which is secondary anyway) the game feels, with its soundtrack and game world and so on, like a very high value production to me.
I think the main misunderstanding is really that while Two Worlds "knows what it is", many people approach it with the wrong expectations. Perhaps the main storyline helps this misunderstanding because it gives the impression that it is just another of those good-looking but linear RPGs you just play from start to finish and never again (such as, sadly, Oblivion, to the shame of its predecessors). But Two Worlds really is halfway on the path to a "fantasy world simulator" à la Mount & Blade. The fondest memories I have of the game is of admiring the beautiful sights while riding through the countryside, arriving in a cosy village and talking to the townsfolk about their daily worries - the world just feels real and alive, which is a rare accomplishment for a game. Players who are not fond of such heavily freeform gameplay will not get much enjoyment out of the game, but it's not the game's fault. As you've said, I think the developers really accomplished what they set out to do.
That's why I couldn't think of what I would most want the developers to improve in Two Worlds II. I want a new giant and beautiful world to explore, ride around and kill stuff in, and tons of items to collect. I don't need/want an encompassing story to lead me from start to finish. In my opinion Two Worlds is really right up there with Morrowind and the (first two) Gothics.

The reality of the situation is that there really is no difference between the "Epic" edition, and the normal, aside the patches being pre-installed. the "Expansions" are simply patches. If you update to 1.7, you have the "Epic Edition"
As for the DRM, I have the retail Epic Edition, and while it is annoying, it's not an "install once, ever" kind of thing. I've already installed it 2-3 times with no issues at all.
That said, get it on GOG. $10 is not a lot, GoGamer will likely be near that after shipping anyway. This version is pre-patched, and DRM free, which is always awesome.

Don't know why I didn't think of it, but Fable: The Lost Chapters might be an excellent choice. I think it'd be hard to get bored.

Wow, this sure is a discussion-inducing (shall I say controverse?) release. Not even absolute cult-favorites Master of Orion 1+2 and Blood got so many responses :-).

Sod it I bought it. Why not?
Incidentally Oblivion is a terrible first choice for open world RPG's. I've had the game for over 4 years now and only now am I starting to play it. Fallout 3 would be my choice.
And if anyone feels like jumping in to say "ZOMG FAILLOUT SUCKS" then please remember I really don't care about your opinion. I played Fallout 1, 2 and 3 and I thoroughly enjoyed Fallout 3.

This game is pretty good. I picked it up for 6$ in a bargain bin, and enjoyed it more than oblivion.
I bought it again here to get the drm-free version.
Maybe this will give me enough motivation to finish the game.
(I quit half-way through most games, even if I like them.)

Maybe this is more about releasing a game without any DRM more than releasing an old title. : )

QFT and having all the expansions included as well; I do not understand people reactions. I rarely believe either positive or negative hype anyway.

I have to disagree. The guy who voices your avatar/character has the part pitch perfect: campy, over the top, but right into the style and feel of the game.
Oh, come on you two. Oblivion's one of my favorite games of all time (actually, the entire Elder Scroll series is); but I love, and am playing again, Two Worlds. I love the main character's voicing. I frequently laughed out loud the first time I heard some of his one-liners. (Duke's dead, and it's just as well: this guy's got him beat in the one-liner department.) The openendness is marvelous. Once I figured out how to control the horse, I found horseriding fun. It's a fairly easy game, but then it's a beautifully rendered world full of things to do and places to explore. Those of you who are considering a purchase, go ahead. A good old game, indeed.

You think 10 bucks and drm free is a bad deal for this game?
You should see walmart.
http://www.walmart.com/ip/Two-Worlds-PC-PC-Games/5614653

PREACH ON, BROTHER!! Seriously, I have never understood the vehement anti-Fallout 3 atitude from many of this forum's members.
Also, cannot fathom people complaints about Two Worlds. It's too new to be on this site, yet it's old enough to be in the bargain bin so it should be cheaper!!!!?

Huh. Doesn't that go against walmart's policy of not selling anything that could be considered even remotely fun?

Well if I had to recomend a "beginner" RPG I would probably also go with Fallout 3, it has the big advantage of being playable without tons of mods (which IMHO can't be said about Oblivion) and it's rather lite in the RPG side, even if you completely screw up your character levelling you are most probably going to be able to finish the game without too much difficulties.

I also really enjoyed Fallout 3 and still play it frequently due to the modding commiunity, it was also the game that got me interested in the series and also brought me to gog. It's also much more interesting without mods than the bland, generic fantasy world of vanilla Oblivion