Considering the war islands were, in the eyes of many at the time, the antithesis of roleplaying, I am not sure why that would surprise you.
I don't really see how they were the antithesis of roleplaying. I played in Taselak, on the SEI, and I honestly saw a lot more roleplaying there than most other places.
I'm not surprised, just disappointed that such a good opportunity was wasted.