Yes on that I agree, the current text display of dialog is confusing to say the least and this in part is why I got a bit worried about the 2 character dialog system. It is REALLY hard to see who is talking to whom. Some of that is because of ALPHA but more of that is because the layout is confusing and sometimes not particularly standardized.
And you can't tell who is currently talking to whom. Which I find far more problematic. (The dialog window says who it is, but they aren't marked in the actual gameworld) So you can sometimes be talked to by someone and have no idea who of the 4 guards on screen is doing the talking. In BG2, the one talking was marked with a flashing circle under their feet and if multiple people talked the camera sometimes nudged over to center on them. Or they used white-text above the heads to denote things not said in dialog to you specifically.
When I think about it, in BG2 I was never confused as to who talked to me at any point. Even though BG2 has a lot of dialog and often 5+ people involved in dialog to boot.
I think Larian would be well advised to revise the dialog text window to be more like Baldurs Gate 2, not because I have nostalgia (which I have, but for that I have Pillars of Eternity) but because the BG2 dialog system functioned extremely well.
