I think they're not calling it an MMO out of modesty. I guess they believe it's not really "massive" enough to be an MMO.
From what I've heard, I expect it to work a lot like Guild Wars 1, with instances you can go into alone or with a party (or in the case of Destiny, a few random players) and hubs where you may or may not be able to interact with other players (or hubs might work like instances, as well).
Because you're going to have constant interaction with other people, but probably not on a massive scale. If the idea about sort of popping in and out of servers seamlessly (Shared World Shooter) is accurate to execution, then you'll probably be in a space with, say, 100-200 people at a time rather than thousands like on Planetside 2 or WoW. But you still need to be connected to those 100-200 people. I feel like this will be justified by having parts of the game where you HAVE to participate in large, raid-like activities in order to "level up", get new gear, etc.
Destiny is huge, just like an MMO not all of it will be on the disk, actually most of it won't only the necessities. The rest of the game is loaded and streamed from the server.
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