Well, whoever said it is wrong!
tim333, legendary Pier Solar player and FAQ writer, has just completed the game without fighting anything but the required boss fights. That's right, he ran away from ALL random encounters in the entire game! What can I say? Well, I'm extremely impressed, but also thankful towards Tim who confirmed my statement that grinding isn't necessary in our game; what you need is strategy and exploration.
You can read all about Tim's pacifist run here, where he made a "log" about it:
Thanks again Tim, you are one terrific lad!
/Zebbe and the WaterMelon team