Currently dialogue is somewhat of a mess, and I'm not speaking about PC dialogue, but rather NPC dialogue. I have never been so overwhelmed in my life (even when playing ultima) with the sheer amount of dialogue options given to basic NPCs. Even so, some of their responses are just screwed up, for example.
Me: 'What's your name?'
NPC: 'Oh! You scared me! I thought you were a zombie, you can never be sure these days.'
^ this, despite having been talking to the NPC for quite some time beforehand.
There are also some implementations of the old 'topic' dialogue tree that was existent before the implementation of the full sentence responses. Stuff like 'Standing Stones' as an option.
I think it would be better to have some improved dialogue trees for basic NPC interaction. I'm not saying that everyone has to say something different, but this whole 'presented with 14 dialogue options from the start' isn't... friendly to say the least.
