As far as I know, Greenwood's Forgotten Realms campaign -- like Arneson's Blackmoor and Gygax's and Kuntz's Greyhawk -- started small.... the DM needs to have all that prepared ...
Then again, Greenwood started envisioning his world before D&D -- back in 1968 -- as a setting for fiction. Stafford's Glorantha and Barker's Tekumel also long preceded the role-playing games.
Trying to match right off the bat even the fraction of detail in the 1987 FR boxed set, which drew on almost 20 years of development, would be a heck of a task. As I suggested above, I don't favor starting with anywhere near that much worked out in any case.
Yes, that is essential to the campaign concept! Informing that choice is an important part of strategy.I think one important aspect is that the players choose the level of risk that they want to face.
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