Eh ...
Dunno, seems to me like funny pun than good writing. :-/
Im quite sure that Larian have some very talented writers ... sadly im certain that its not all of them. :-/
Since when i concider my dialogue options, im like 70% of time frustrated that not even single one fits my character, than exited about how well is something prepared for us. :-/
BUT!
If there is something to praise Larian about, it would be their dialogue traps ... this would be one example, illithid on beach would be another, refusing to help Goblin leaders can be concidered another i guess ... Kithrak and his dragon SHOULD HAVE ben another. :P
Its only sad that there isnt more of them.

And that is what i would call good writing.

Being able to offer enough options to your players to actualy express themselves ... and be willing to react on those options acurately!