Maybe not... there are hundreds of really crappy low budget MMOs that play very similarly and have lots of grind. I closed the Window the first time I saw the tag "MMO", but then decided to give it a second shot because it had a team of two behind it.
I'm not sure it entirely qualifies as an MMO because of the inherent
persistent world aspect of the definition. This is by no means a bad thing; the Diablo games can't be classified as MMOs either.
KrabbitWorld Origins is not an MMO.
There is no grind in KWO. XP and loot flow aplenty. Leveling is fast.
Agreed, Diablo is a favourite among our testers, none of whom found any lack of direction in our game.
I played the game a little bit, I was a bit tired so I probably didn't get the most out of it as I could've.
Probably not a smart idea.

The thing I don't like is just the overall lack of direction. I know the website has everything documented, but its incredibly hard to just jump right into the game. I mean, even full scale MMO's I'm able to go right into without reading anything before hand, but I just didn't get this game. More in game instruction would be nice.
As said, the game is not an MMO. Could you be more specific? None of our testers have had any problem jumping right into KWO, but then they are pretty hard core gamers who enjoy games like Diablo, NWN, WoW, CoH, CoV, GW etc. etc..
How far did you get. Did you see the flashing red X (marks the spot) in the mini map indicating where to go?
Try pressing M to bring up the
map with the flashing regions beckoning.
Other than that, if you can be more specific perhaps we can fix it.