pretty much, yeah - the whole game is centred around kirkwall. there's bits in the wilderness around it, but not much further than a few miles. i'm ok with that really - the way they've done the town works really well.
(a few spoilers ahead, up to the start of the 3rd act)
my problem with the storyline is... well, as soupy says, there isnt one really. theres 3 seperate storylines for the 3 acts, and an underlying element of the 'mages vs templars' conflict running throughout - but nothing really epic going on. i was expecting to find something amazing down in the deep roads, but no - a few fights with big stuff, and nothing more said about them. you dont (at least so far) discover that the relic bartrand stole is some amazing world changing item - it just seems to drive him slightly insane. the fight with the qunari is just a fight - you'er not fighting off a full blown invasion, you're killing one arishok and his personal guard, who are there looking for a relic - really it just feels like the end of isabella's companion quest arc (and for that matter, act 1 just felt like a Varric companion quest). and the mages vs templars conflict never feels real to me - especially when theres so many apostates (eg. you or your sister) just wandering the streets, chatting away to templars, etc.
essentially, all of the storylines just feel like sidequests, and theres no real epic storyline to tie it all together - except for 'this is the story of a refugee of the blight, and his ascent to championhood'.
its a lot of fun, i'm definitely enjoying it, but its not what quite what i was hoping for.