TL:DR
No, AO is NOT a bandit beater (in my opinion).
Let me start things out by defining, to me, what a bandit beater means.
A bandit beater does not mean you’re “beating bandits”. Most games (TTRPGs, Video games, etc.) have bandits in some capacity that you fight in PvE. That does not make them bandit beaters.
I would define a bandit beater as a game where the PvE is pretty much completely mindless and totally stats-oriented, from beginning to end. The reason why it’s referred to as a “bandit beater” is because the enemies’ AI does not evolve much past the basic bandit, only the stats improve. For example, in A One Piece Game, all of the enemies(to my knowledge, I stopped playing) walk forward at you. That’s it. The only difference between the enemies is the move(s?) that they use, that move’s damage, their health, and what character they’re supposed to be.
That’s the only difference separating the basic, level 1 bandit enemy you fight, and a boss like Blackbeard. There is no difference in AI, no vertical progression or increased requirement of skill, the only requirement being that you need higher stats and better attacks.
By that criterion, Arcane Odyssey is NOT a bandit beater. I’d assume that at least one person who’s complained about it being a bandit beater has also complained about Lord Elias, or any of the other bosses, being too difficult, and that’s because AO is not a bandit beater.
A lot of PvE in bandit beaters revolve around spamming your AoEs mindlessly until you kill everything. In AO, if you do that on bossfights, you’ll die.
I personally support the nerf to the “kill X enemies” quest’s XP gains, because it encourages players to engage with the variety of options you have to play the game, which is one of AO’s biggest strengths.
If you have an opinion on this topic, feel free to voice it. I’m sure there could be some good arguements for AO being a bandit beater that I’m unaware of because I don’t agree with that opinion.