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Too many random encounters is bad, but none at all is boring, imo.
The problem of not having them is you you are then limiting the characters potential. You can only go up so many levels, customize your character so much and become a big beefy super dude to only a certain extent without them. Granted you could make them re-spawn, but if they are always spawning in the same place it gets annoying.
For example, in FFXII, there is no random encounter, but the enemies are always spawning in the same place. I guess you could do way with random encounters, so long as you have enemy spawning be fully random, within limits of course, No one wants to fight a lvl 49 enemy when they are lvl 3