DrWevil: I remember it being said when this game first came out that could walk from place to place.
[...]
A perfect example of this is to not open you're world map when virgil first asks, but to follow the rocky path. You may encounter some rather angry wolves which you would've simpley bypassed if the world map was used.
You don't have to use the map travel system, you really can walk/run from point A to point B. That's why you cannot travel around the southern edge of the mountain range splitting the middle of the continent. To prevent you stumbling upon certain towns too early.
I wouldn't recommend it unless you where attempting to 'find' a town or area you already know exists but your character doesn't. Its incredibly boring for the most part. Unlike right the start with those wolves, its actually far safer (and a bit quicker in terms of 'game time') to manually run between areas yourself if you wish to avoid random encounters.
There are secret areas to find on the map that can only be located via manual travel through the wilderness. Not a lot of them, and I'd still recommend hitting up a walkthrough to find the general area of them rather than exploring all on your own.