It sounds like the way you construct your sandboxes and do the up front work, if your players do 1 & 2 you're quite possibly playing a game in the narrativist dynamic per 4. It sounds like your factions in the world have goals that they're pursuing the PCs may run up against, the PCs have drives and interests in the world, and you're not planning ways things turn out. This may not be your intention or goal, and maybe your players are a little less doing 1&2, but while games like BITD or AW or whatever may be designed from the get go to essentially force narrativist play dynamics that's just some creative intention.
This is why I've made repeated comparisons between Roberts play and my own and have pointed out how those exact preconditions created a moment of Narrativist reward in the play of
@SableWyvern
Where the current disconnects happen are along the lines of realism and when/how a situation is created.
What a lot of the sim crowd mean when they say 'real', is that extrapolation happens without regard to the player characters. Otherwise the world feels contrived, well in fact
is contrived.
A Narrativist response is that the contrivance happens anyway but being aware of it allows for better play for gamestate reasons, amongst others. It's a somewhat complex topic.
The other disconnect is:
Prep v no prep v situation: So if you have the situation limited and prepped, that is obviously different to having to create the facts with very little to extrapolate from. The creation of certain types of facts can't help but be contrived in some sense. When you have those facts in place then as Pemerton and me said, 'you're back at the start of the dungeon.'
AN EXAMPLE TO MAKE THAT STUFF MORE CLEAR
Your group of adventurers decide they want to give up the adventuring life and start a home for stray dogs. They head to a city that has only been mentioned. The GM may have some rough prep for it in terms of where it lies in relative to the geopolitical landscape but not much about the state of dogs.
and here we have our big bone of contention
There might be 'something' within the given prep that allows for extrapolation with integrity but probably not (we can call this '
@pemerton 's warehouse' from several threads ago). Pemertons warehouse = How do you extrapolate if there is nothing to extrapolate from?
So how does the GM decide the current status of the stray dogs and the policy toward stray dogs in this vaguely sketched city?
AND SO THE BLOW BY BLOW IS
Whatever answer you get to 'how', you can then reference this to the blow by blow of actual play. If you watch a video of a session where they are running the dog shelter, what is actually happening? what's being described and what are the PC's doing?
That's when we see the rubber meet the road.