As a developer I prefer tasks because they allow for a clean way to track player progression via what tasks they have completed (opposed to using qglobals).
Also they are far superior for any quest that has multiple steps that need to be completed in a specific order involving multiple NPC's.
I do feel they tend to lessen immersion as well but really as stated above that is dependent on how you write them.
Finally, I think players like having that little task window to as a reminder of what needs to be done and a goal to achieve.
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