That is the crutch of it. I really want to try the new improved hard mode but I know that if I come into real competition it will take so long that all the character arcs will be done in chapter 2 and chapter 3 will just feel boring. I wish they had all had long arcs but princesses in particular. All of the arcs are short but the princess arcs are so short that even rushing the enemy you usually finish their arc so quickly. I also wish that there was some plot that was act 3 dependent so even if act 2 runs long you can still have some plot going on during act 3.
I don't think we necessarily need more choice. The game provides plenty of choice, but I would trade some of that choice for longer arcs in a heartbeat. I get that Larian wants them to be quick enough that you will finish them over the course of the game and it's probably too late to change that (you would have to record whole new lines to flesh the arcs out and someone on the forum said that Larian won't release any new DLC for the game). The thing is while this works for the generals (on a quick medium difficulty game you only run out of plot for them in the last 10 or so turns), but the princess plot lines are extremely short. They tend to last around 20 turns tops. You would think such a politically important figure would receive a longer arc then 5 or so decisions.