So RPG has devolved into meaning level ups and item selection?
Those elements are typically found in RPG games....
like those first person shooters in which you often have to walk and did you notice: in Sims 2, there are walking people, too, so Sims 2 has to be a FPS -.-
taking one single element of a RPG and putting it into another game of a different genre doesn't qualify for calling that game a RPG, too. I think that RPG is the most inflationarily used label which is put on games these days. Dang, I miss the days of Baldur's Gate where RPGs were about a captivating story and not about having an inventory... :-/