Not all stories need to be save-the-world types.
Not all need to be character driven.
Sometimes you can do both!
Example: Star Wars episodes IV-VI. Highly character driven. If those characters were anything but what they are, Star Wars would not be what it is today. Even when Luke is fighting for the galaxy, he's still in a personal battle. It's not about him versus the Empire. It's about him versus his father. (I also wonder if this is why I-III aren't so popular - the conflicts are not near so personal, with random evil bad guys coming in and just fighting the main characters for the reason that they are good guys. ;D but I haven't seen 'em)
Example: Narnia: LWW. Highly character-driven. It's not really about saving Narnia. It's about saving the individuals, it's about saving Edmund. Along the way we happen to save the world.

Ditto for most of the other chronicles.
Example: Lord of the Rings. This isn't so much about saving the world as it is the character development. No one starts out the story saying "we're going to save the world". No one even brings up the subject until halfway through bk1! Even then, we keep encountering personal conflict after personal conflict. The story of the characters isn't how they save the world. It's about how they grow as people, and therefore are able to do things which work together to save the free people of Middle-earth.
(unfortunately, you can really only have one LotR, every other book I've read/heard of that tries this only seems very fake...)
The fantasy genre is typified by saving ::something::, I think.
I agree that we could make a fantasy story about saving a peasant farmer. But then you have to come up with the logic of 'what does he need saved from and why are we spending 400 pages talking about him'?
So the stories I like best are the character driven ones, like Narnia, and Star Wars, and Lord of the Rings.