Yeah, Xenoblade is the type of "welcome to this area, here's 30-50 quests that individually give you very little xp/money and the items are usually junk or average". It's only when you do a ton (or most) of them that the xp is worth it and you save up some good money and run across a few pieces of great loot in the rewards.
Otoh, like Alex said, if you were going to explore and find these locations, kill these enemies on your own anyways, because adventuring is fun. Then the extra little reward of QUEST COMPLETE when you do it and some bonus xp/money/items is a nice pat on the back that makes it more fun.
I think yeah, if you don't stress on making yourself do most of the mobs (like the lame ones) and just grab as many as you can before you head off and get extra rewards as you explore and play you'll get the most satisfaction. UNFORTUNATELY I think the game kind of screws you here, because the way the quests tend to work is 6-7 people will give quests, and you have to finish them to get the next quests from each person, repeat, repeat, repeat. So while exploring and doing the first set of quests, you're likely to do the requirements for the later sets that you won't have gotten and it doesn't count. One nice slightly compensation is that if you get a drop that is used for a quest that you haven't gotten, you see a vision of it being used in a future quest and it has a blue "!" next to it, so you know not to sell/trade it.
To me the fun questing in XB is:
-Oh hey, I'm exploring and I just found some cool glowing red quest item that I can give to someone later and finish a quest
-Woah, look at that giant unique monster. I think I can take him on. Good thing I got a quest to kill him (or oh wait, I haven't gotten a quest to kill him yet, maybe I shouldn't try)
To me the not-fun questing in XB is:
-Zzzz I'm grinding a generic boring enemy over and over for 30 mins because I need 5 rare drops from him so I can get like almost no xp/money/and a junk item. This seems counter-productive.
-I need to get drops from some enemy that I can't find no matter how many times I've covered this area, wtffff I am wasting my time. Where is my Beastiary
Also most quests go like this:
-guy says "please go kill 10 of these animals because they are scary"
-you kill the 10th animal and a screen pops up "congratulation, quest complete, here is your reward"
-if you go back to the guy he's probably just become an NPC at this point and won't thank you
Some quests require you to go back to the original person and then there's a bit more plot.
Also Also, this game is meant to be played like a Tales game where you switch characters every hour or two to keep the combat a bit more fresh. Like a good Tales, all the characters are good and fun to play as and have vastly different approaches to how they support the others in battle. Plus playing as other people builds up relation points with the other characters and you want everyone happy with each other so you can view all the kizuna talk optional scenes you run across.
Overall I'm enjoying it. But for me it's definitely not edge of your seat I can't put the game down I want to finish the dungeon/I want to see what happens next experience like Takahashi's other games (I think I played through XS ep1 in about 2 marathon sittings total), which I have to admit I'm a little disappointed that it isn't. It's sounds like it's Takahashi's offline WoW/FFXI, and I don't play WoW/FFXI because they aren't my kind of rpg gaming. I also miss Mitsuda ;_;
But overall it's definitely a good game so far (~15 hours in). Hoping it becomes a great one as I get further.