The goals and rewards happen in the game, not the meta-game. There's a rumor of a roving band of ogres? The PCs save the day by defeating the ogres or working out something so they leave without combat? There's a celebration in their honor. They decide not to follow up on the rumors or run away instead of staying to fight? When they return to the village it's been destroyed and that nice bartender blames them for his wife's death.This sounds all well and good, but a game without goals and rewards strains the definition of the word game. Moreover, you may think that by eschewing XP, you’re not rewarding any particular kind of engagement, but really what you’re doing is not intentionally rewarding any particular kind of engagement, meaning the only play rewards are unknown and unintentional. But they’re there. You and your players may not notice, but your brains will.
On the other hand, I don't want to reward a particular style of play. I want the world and it's inhabitants to react to the PCs based on what I think is most logical from the inhabitant's perspective. Do they ambush the ogres? Bribe them? Figure out why they left their homeland and work out a deal? Help the villagers prepare better defenses? Not up to me to encourage one way or another.
I can't tell you whether our brains notice, but I view my job as DM to set the stage with interesting actors and props. What the players do with it is largely up to them. I've been doing this and it's worked well for the past couple of decades.