I think that fluff is really useful.
Let's say that a player wants to get a suit of Holy Radiance Armour.
The DM could rule that he needs to go to a corrupt town and pray in the open in the town square, converting the town to Pelor while exposing himself to a lot of danger. If he does that, poof, his armour becomes Holy Radiance.
Or he could tell the players the story presented in the book and place the armour in Xelfide. The players can decide if they want to go get it or not.
It's a great way to get a player-driven adventure without having to do much work.
That's an interesting take on it.
Of course, that sentence might just be another way to say: "It's not RAW, but it sounds like a
fine houserule".
Hey, I consider this learning experience for WotC. It's a start, but they haven't quite found what people expect them to have. It's not like the fluff is horrible or boring, it's just that we learn that people don't like it to have no impact.
Oh, and from me what they can also learn: Create some fiction. Not too much, but do more than retelling of stories. In a way it's the "show, not tell" concept, except you still can just tell a story. But the perspective is different. Again, the story of the Halflings could have been presented with the entire story in a few paragraphs, and then a piece of fiction describing how they entered the lair.
Of course, this takes a lot of space, so I am not sure how often one should really do this. There is alway the problem of fluff/crunch ratio in books. maybe it is actually a good idea to start with lot sof crunch-heavy stuff, and then soften it up a little?
In the end, the fluff/crunch ratio is probably something very subjetive.
Maybe a start is not to treat them "equally". Not every type of crunch needs the same amount of fluff. Maybe it is okay to just have around 4 to 8 pages in a 200 page book that are devoted to some "immersive fluff".
I certainly see no reason to not order AV2. Legacy/Earthdawn like magic items would sure have been cooler and an even better reason.