You can tell by the replies to my post that their definitely is confusion about what makes an RPG.
Real RPG's are about the avatar (you!) and how much depth (attributes and skills) you have to change that character and how the world changes via NPC's and quests and storyline with regards how you build that character. Diablo doesn't have that. Divinity does. Mass Effect doesn't have that Fallout 1,2 and 3 did. Jade Empire didn't have that, Oblivion did. practically all RPG's prior to 2002 had it, with some exceptions.
Don't believe me, believe Todd Howard of Bethesda, involved in every Bethesda RPG since Arena, He was talking about Morrowind (which he was Project Leader for) prior to the release of that game - and I quote:
"I think that character development is the core element that drives any RPG (what I call a 'real' RPG today, because of all the fakes!), and always will be. You do need a good story, or a good world, in which to use that character, but the first thing to get right is the character development."
When you look at the lead character of games like Jade Empire, Mass Effect and Diablo, to name a few, we see very little depth to the character (in terms of stats and skills) and a world that reacts to him/her and changes because of him or her. Rather, in these games, we see the emphasis on the armour and weapons , these are what many many games now put the stats into. This means the story and the world can be much more linear.
In 'real' RPG's, for example (as in Oblivion, The Witcher, Fallout, etc), the character depth has to mean a much more non linear world. If you can be very diplomatic or very stealthy, you can only be that in a gameworld that reacts to those stats/attributes. By having a character with no diplomatic and stealth requirements, you do not need a world that caters for that. Therefore the gameworld can be much more simpler. This is why we get Mass Effect and Borderland style 'RPG's' that 10-15 years ago would have been called 'Action-Adventures'. Only in the last 5 years have we heard terms like 'Action-RPG' and games with 'Lite RPG elements'.
We have seen with both Bioshock 2 and Mass Effect 2 recently how the publishers has pointed out more effort had gone into the action element, meaning, by extension, less roleplaying. In Mass Effect 2, for example, you no longer travel between locations in the city, talking to NPC's as you went. you fast travel there instead.
Even Dragon Age was not a true open world RPG, and was much closer to Mass Effect than Baldur's Gate. The game, when looked at without emotion, had 10-12 locations that you fast travelled to, enter a main story linear quest (The Deep Roads quest, for example), finish this linear quest, have a cutscene/conversation, then fast travel to the next linear main story quest. Inbetween you had the chantry notice boards. While these were called 'Chantry quests' they were really just 'fast travel somewhere, fight some creatures fast travel back. Now I finished Dragon Age, and thought it was a good game, but it wasn't an open world, non linear RPG like Baldur's Gate, but rather had the Mass Effect more linear storytelling and quest structure. Also, the variation between Human or Elf, for example, as you travelled through the gameworld was not as pronounced in gameworld reactions to you or you to it than the hype suggested.
So I would say that other than Bethesda, there is no large Western RPG maker any more. All we have are retro titles like Daggerfall, Wizardry or the Fallout series, or titles that still seem to be coming out of Eastern Europe, with RPG's like The Witcher, The Gothic series (including Risen and the soon to be released Gothic 4), Two Worlds, Drakensang and King Arthur the Roleplaying Wargame. Eastern European seems to be the last bastion on pc ONLY games, and PC style open world non linear 'real' RPG's, with no influences from the console market. Equally, Western publishers, like Bioware are taking more and more notice of the console market. It's no coincidence that as Bioware have moved from PC only to our current multiformat market, so it has gone from Baldur's Gate 2 to Mass Effect 2, both called 'RPG's', but miles apart. If that's not genre confusion, I don't know what is.