- The jumping back and forth to NPC to NPC is alternately helpful and alternately confusing - helpful in that it would be hard to find them again, and confusing in that the "jumps" tend to break the flow rather than help it.
One thing that I was thinking is that maybe this feeling would be smaller if there was a small animation (if it's long it would be tedious) at the end of a conversation an in the beginning of the next one, instead of the way it is now.
Elaborating a bit. A character talks with NPC. The conversation ends. Close the dialog screen. Character turns around, do 1-2 steps (with the screen centered in it). Fade out while it's is moving. Fade In, with the character approaching the next guy. 1-2 steps (with the screen centered moving it), it stops. Dialog window opens. All that in about 3 seconds, maybe 4.
I don't know how much difference it would make. I don't know how hard it would be to implement it, or if even as a quick animation it would be tiring. But it sounds plausible, and I think that would smooth the transition a bit.