I think a lot of the problems with character thoughts and expressions are the fact that they don't change based on your background or alignment (which they decided to not implement at all). I think both of these are a problem as it does take you out of your character a little bit when they look scared or disgusted when that would not fit.

I very much agree that the cut scenes should all play out when they are unlocked. It is a very bad idea to gate these off.