Yes, I firmly believe this is because they wanted to reassure players they weren't going to have to experience another incident like in the main game. "Nope! This horse is a badass! Worry not! " There was one bit in his quest line, that made me think for a split second that they were going to let the horse have a Standoff combat sequence with some Mongols, given the way they set it up. I commented to my wife about this, and we both agreed we 100% wanted to see that, regardless of how ridiculous it would be.The best part of the DLC is them starting it off with your horse being this awesome hero horse all of a sudden, which was so stupid and anime I kinda loved it.
That's basically where the Legends multiplayer comes in. Since it's all a visualization of these No tales by that one npc, they can be way more out there.One thing that keeps coming back with this game is this sort of but not really supernatural element. You can tell the developers tried very hard to implement cool, over-the-top Ninja Scroll type stuff without breaking the historical setting and narrative. Which makes me think that maybe they should've just opted for a supernatural samurai game and ditched the historical "realism".