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I'm really looking forward to Pathfinder Online for a numer of reasons but high on the list is the wealth of dynamically generated content in the game, much of which is generated by the actions of the playerbase. Some of the quests in the game clearly will be generated by the players in the form of bounties, contracts, etc. I would like to suggest a possibility for dynamic generation of non-player-created content.
Way back in the day, Sid Meier created a spy game called Covert Action. The game had its share of flaws but one thing it did which I think has tremendous potential was the way it generated "missions". The game contained ten mastermind villains; in Pathfinder Online those might be evil demigods, demon lords, mighty necromancers, or crafty dragons. Each of those mastermind villains had a specific objective, something far-reaching requiring the achievement of numerous smaller objectives; think along the lines of development, production, and distribution of a magical disease or the subjugation of an entire region by turning everyone into undead.
To acheive that larger goal, several intermediate goals would need to be achieved, perhaps an ancient formula retrieved from the depths of some ruined wizard's tower or the destruction of a village for the rapid generation of corpses for reanimation. Some of these intermediate goals might be broken down into even smaller goals such as researching the location of a wizard's lost tower or blackmailing a guard captain to turn against his village.
The accomplishment of these goals can be approached from two angles. Through successive layers of obfuscating underlings, the mastermind villain needs to hire someone to accomplish these goals. But as word gets out that someone is being or has been hired, opposing forces may choose to take action to prevent the accomplishment of these goals. So for each goal, content is generated for two types of players.
Now, from the mastermind's perspective, the goal NEEDS to be achieved. If one group fails, another group must be hired to achieve that same goal. Perhaps she hires from a different region and that same quest spawns elsewhere in the game. Once that goal is achieved, the next step in her nefarious plan gets generated as a quest. At some point along the quest chain, perhaps there is a point of no return where failure of the quest results in a complete collapse of the quest chain. And that quest chain might appear later in the game having been generated by a different mastermind.
So from a list of masterminds and a list of plots, a series of goals can be generated as quests. Each quest results in content for two types of players, the "for" and the "against." Some of those plots may share similar goals to reduce development resources and to obfuscate the true nature of the plot.
I believe this could be a great way of encouraging player interaction in an ongoing storyline without that storyline being static content that is consumed once and then ignored.