While many will argue against it, I'm fine with random encounters and save points, versus touch encounters and save anywhere. Old school to me was first and foremost the graphics, audio, and combat, followed by the good game play mechanics and story. Okay, story wasn't quite what it is now, but Final Fantasy II (NES), Crystalis, and Dragon Quest 3 and 4 had some decent stories going on, even if they weren't written very well.
When it comes to game play, I was really partial to the challenges of the boss fights and finding strategy to overcome the obstacles, the side quests (DQ 3 and 4 were loaded), and being able to explore new areas.
What I absolutely detest (even for nostalgic purposes) is being forced to play an hour plus with no chance to save. I'm not a kid anymore that can afford to sit around for 2 to 3 hours without responsibility, only to die and have to sit around another 2 or 3 hours. Not only is that time wasted, but life duty calls, and I usually have to be able to start and stop on a whim. The worst game I played (on the DS) was Final Fantasy 3 (not to be confused with Final Fantasy VI). The game was great until the last dungeon, in which the difficulty not only spiked, but I was bombarded with random encounters left and right, and took me nearly 2 hours to complete without a save point... only to die at the final boss and have to redo it all again.
My advice, allow the player a chance to save for about every 30 to 45 minutes of game time. If you know a dungeon will take about 2 hours to complete, then there should be about 2 to 3 save points thrown in. With that, you can make your enemies more of a challenge and thought provoking, so the player doesn't just spam attack them; however, try to keep the encounter rate down, and ensure players don't have to grind too much. Some grind for these types of game is okay, and to be expected, and maybe even encouraged; but they shouldn't be expected to have to stand around in a circle and fight for an hour before moving on.
As for encounter rate, I typically suggest the 30 to 50 step rule. 30 steps for smaller areas, 50 steps for larger areas. There are scripts and tutorials that show how to change the rate (with items) to allow players to increase or reduce the encounter rate.