Pretty sure their exact phrasing was "with mmo like qualities" not an actual mmo. Also, mag had 128 players in combat at once. Granted buggy as hell and laggy sometimes but still enjoyable. I think they could have pushed to a lil more than 3 in a fireteam and 12 in a world/planet.
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Totally agree with having more players in various places that are instanced. The only disappointing thing with that in mind is there really aren't activities besides Public events which encourage simultaneous/coop play. The events are also slightly slow to happen which I understand due to the rewards however again then you don't have coop activity. They should have released an area/zone etc for high level farming. Not killing lvl 5 guys for drops. That way you may have had more of a reason to team up with others around you.