volume based distance: +1
They have it, just in many cases it could be better. Heck, in some cases it's overdone - some NPC chatter can't be heard unless you're almost sitting right on top of them (Jake the dog, for instance - although you need Pet Pal to know that). The fish thief in Cyseal is another - his entire conversation with the player is voiced (which is unusual compared to the other NPCs), but good luck hearing the voice-over it if you're more than a few feet away. It's so much lower than the other voices.
