This is not true. Did somebody play the game "Overlord"? It uses terrain (and indoors as well) but does exactly what Joozey desribes in the last post: You walk a certain path to kill some enemies and to find a magic object. At the end you lower a bridge and you stand exactly where you started this path just to go on to the next adventure. Very cleverly done.
Yes, I agree, but it's also a great example how they still actually did some proper level designing.. instead of using the terrain as an excuse to generate more space, but not really more gameplay,
Cheers