My issues are these (with Morrowind - I
hope Oblivion fares better):
(1) Lack of choice in dialogue. Almost all the choices (if not all) were quest branching decisions. There were few of these, but when they did come up they were signposted. Mostly your choice had no long term consequence. When you weren't making a quest branching decision you had no choices. Any long game sequence with no real choice is going to get boring. Sure I can use my imagination - I can do the same in a bare prison cell. It doesn't make the prison cell interesting in itself.
(2) Lack of control over exactly what is asked about. A few of the clearest examples:
"Vivec" - am I asking about a false god or a city? What if the npc responds to the wrong question?
"Services" - am I asking whether that npc offers training, am I asking about town services, or [LGNPC reference] am I perhaps implying that the npc is a prostitute?
There were many other instances where the player's tone / wording will matter, but he is expected to work it out from a one phrase choice. You're often sent to retrieve books / enquire about Dwemer artifacts etc., but have no way of knowing whether your character is going to ask something subtle and clever, or put his foot in his mouth.
For instance:
"Chimarvamidium"
Does this mean:
"What's a Chimarvamidium Sirilonwe?"
Sirilonwe: "I've never heard of such a book."
Player: "Did I mention a book Sirilonwe? Perhaps you're hearing things."
Does it mean:
"I was talking with good o' Edwinna, and she mentioned you've got some secret stash hidden somewhere. Chimarvamidium I think she said. I dunno."
Sirilonwe: "I've never heard of such a book."
Player: "Oh yeah - a
book. Sure. Now where is it you old crone?"
Or perhaps:
"Wasn't Chimarvamidium the name of a golem? "The Hope of the Chimer" I think they called it. I think it was given by Sthovin the Warlord to Karenithil Barif as part of a peace agreement. I could have sworn I read that somewhere, but I tend to sell on all my books once I'm done with them - not very scholarly I know. "
Sirilonwe: "I've never heard of such a book."
Player: "No - a golem. Have you been listening to a word I've been saying?"
Even when there is no consequence to a dialogue choice (not exactly uncommon), the idea that the player can come up with his own wording is flawed. The player can only come up with convincing wording if he is sure that such wording will correspond correctly to the NPC response. If you're saying "Balmora", then that's not too large a problem. If you're trying to get information from a quest target NPC it can totally break the player's immersion [sorry]. On a number of occasions in Morrowind I've wanted to enquire subtly about a quest objective without raising suspicion.
Often enough the response given has been to the question:
"Come on npc X. I know you've got item Y. Cough it up now or things will go badly for you."
But
that's not what I wanted to say!!. Sadly the screen doesn't hear my swearing, and everything continues as though my character was going for this year's "Mr. Unsubtle of Vvardenfell" prize.
The only way to avoid putting your foot in your mouth in Morrowind is never to raise any topic which could possibly be interpreted differently from your wishes. That's very restricting. Any "freedom to imagine what your character says" is illusory, since the response might be to a different question.
This is: A Bad Thing.
Also, on player "character" in Morrowind, there isn't really any. All characters can do everything and "max"
every skill and attribute. There is very little character development through dialogue. You can't even base character around stats over the long term, since almost any character will eventually move towards 100 in everything.
Even if you don't get close to 100 in everything, it is clear enough that's where you're headed. I found it totally uninspiring to know that if I strived really hard I could eventually get to a stage where my character had lost all individuality, and was the same as every other high level character.