I gotta say, props to Anaris and Vita for taking this seriously despite the stupid Twilight additions to the poll.
Half echoing others here, I've got no problem with undead and monsters - they're basic fare in most roleplaying games of this time and real medieval texts have stories and such about them. What's to say our nobles aren't simply making stuff up because they believe in the gods or want to look impressive among their fellow nobles?
That said, having raiders and bandits beyond the occasional flavor text would be cool, too. The problem is that they'd always have to be tiny bands, by definition. They'd never organize into an army in the way we fight undead. Monsters are a different beast (a-ha) because they DO use small units with higher stats.
And finally... "immersion"? I'm not sure that word is really applicable when the game is mostly text-based and there's no real attempt to disguise that you're playing from a web browser. I might
begin to see your point if each letter had a paper background image.
Then again, this could all be an elaborate joke post and we look silly for taking it seriously.