By linear, FFXIII for instance was linear to the truest extent for the first 10 chapters because you literally walked from pretty much left to right or one side of the screen to traverse the game. There was almost nothing to explore at that point. No towns to go buy new gear (you did that from a save station), no side quests, no going out of the way for anything.
The same thing can be said about most other RPGs, but its the "freedom" of a town in some or going back and forth that gives a sense of nonlinearity. But yes, in reality, you go to town A, finish Dungeon1, move to town B, finish dungeon 2, maybe go back to Town A since the path opened then move to town C.
While Oblivion may be more open world since you can travel everywhere you want, you have to complete a storyline or guild in a proper order giving it some sense of linearity.
Shooters are linear, platformers are VERY linear (Start here, end here... even if it is in 3D).
So yes, in fact most things are "linear", it's a colloquialism of the word that makes people think there is literally no other path you can take that brings the word out in a negative context.
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