Originally Posted by Rhaeven
You'll notice if you turn off all mods, head inside an instance that you have a quest for and bring up the map, the default blizzard quest helper won't show you where to do the quest (or at least I don't think it does right now).
WoW provides less location information to you when you are inside an instance, it wasn't all that long ago that you couldn't even bring up a map in there!
As for indoors but not instanced, both WoW and Carbonite will give you quest areas on their maps for indoor locations. I think what you're seeing though, is that the minimap maximizes when you go inside, and the quest area is shown on carbonite's map, NOT the minimap. If you have the waypoint arrow up, it'll still show you the way.
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I'm pretty sure it does mark the location you need to go by default. I have done instances with people, and I will ask where we need to go, and they will just say "look at your map, it shows your quest" and... well it doesnt.
The map for the indoors and instances comes up, it just has no direction. The indicator for the selected quest (both the dotted arrows and the quest marker, such as a question mark) only show up outdoors. The map for indoors and instances is just plain with markers for myself and party mates... Not sure if that was understood or not.