You're not helping the people there nor are they particularly interest in helping you beyond giving them item x for item y scenarios.
Um, yes you did help people you help alot of people, almost everyone you encounter you help out in some way!
You help the old folks whose business wasn't doing well, by giving them a well crafted pair of shoes (righout out of the elves and the cobbler story).
You help the tailer by finding the golden pin that he believes was stolen from him (and lost in the haystack).
You help the willow and the prince, by defeating the witch, and ending their curse.
You help Rumplestiltskin by returning the Spinning Wheel that can turn straw into gold.
The elves claim you 'helped' them out by giving them the gift of emeralds.
You help save the Rat from a cat.
You help save the ants from a dog!
You help save the bees from a bear!
You help a starving eagle!
You help Icebella by defeating the Yeti!
You help save Cedric.
You befriend and save Cassima and your family!
Almost all the puzzles in the game are about doing good deeds!
Hell even the toymaker says that you are helping him by giving him the marionette! That its worth more than sled he gives in you return, and that he's getting the better deal.
Frankly I could describe that quest setup, being a large part of KQ4, KQ2, and even KQ1! Finding some item, and giving it to some other person, to help their needs!
KQ3 was quite a bit different in that Alexander does alot of stealing for his own needs, and most of those things he steals are used to make spells. He rarely did anything to help anyone! Except for his sister and family in the end! Stealing items all were means to the end of escaping back to Daventry and saving his family!