That does seem like a bad game mechanic.
If a great hero has solved all the great problems in the world and sincerely wanted to make the world a better place he would help anyone in need. big or small.
Me > How can I be of service?
Peasant > Someone of your caliber shouldn't be dabbling around with these lame quests, go ask Lord Pantface.
Me > How can I be of service?
Lord Pantface > You have no use to me.