I think random encounters are fine in any game, as long as they're keyed to the local environment.
In some places in Magnamund, such as when wandering the Hellswamp, you'd need a stronger argument to oppose random encounters than to support them.
Naturally, it is also going to depend on how tightly the GM plans his scenarios.
Certainly, I'm not of the opinion that any game or setting is intrinsically better off without random encounters (which isn't to say that they are needed, either).
Now, simple wandering monster tables, as opposed to random encounter or event tables, that's a slightly different issue.