You don't have to be alone to fullfill the Monks quest, nor do you have to stay out of town. It is easiest to just stand around and do something else though. I've noticed that on paper Ninja and Monk seem to be about the same but in reality the Ninja is a far better class. Monk gets Spirit magic but can't wear Plate Armor (except Dragonplate and loses the oportunity to buy a bunch of traits as well.
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