Are you advocating all of this for NPCs? I mean it would be nice but companions have never been much of a focus in Elder Scroll games. Heck all quest NPCs in Oblivion were invulnerable anyway. I guess it would be nice to have a more sophisticated system for situations where, say, you're leading a battalion of guys - which is a very plausible scenario in faction quests - but I highly doubt there's going to be that level of devotion in the next game.
As for non-pausing dialog: maybe, but only if it gets automatically cut off upon something happening.
Yeah, basically what I'd like to have the dialogue system work similar to this. Not just for leading people, but in general - NPC recognising you're talking to them simply because you are watching them, or started the dialogue with their name, for example; and dialogue which can not only be interrupted (by you, the NPCs you're talking with, or the circumstances) but also which can be continued after the interruption. Also, dialogue working like any other object interaction, interface-wise.
Imagine situations like this:
You're walking down the street and some NPCs walk by. One of them utters a greeting in your direction; you have the option of hitting space and selecting some kind of greeting yourself (which would make you slightly more liked by this NPC, but possibly had other effects on the other NPCs in the vicinity witnessing it), or ignoring the NPC. If you talk to the NPC, he might stop walking and say "Can I have a moment of your time?", and a list of possible answers appears on the left side of your screen, with stuff like "Yes, what is it?", "No, sorry.", "Bugger off." and so on. You can stop yourself and pick any line, talking with the NPC while others pass by, or you can ignore him or her and walk away (the list disappears) or you can right-click to ignore it at once (important if you need the dialogue/action menu for other stuff right now).
You target some NPC, press [SPACE] to open up that action menu (like you would to open/lock pick a door, use alchemist equipment, mount a horse and so on), pick "(Ask about ...)", upon which a menu with "(specific person)", "(place)", and so on appears, move your view to the left to point at a house nearby, when the additional context sensitive option "this house" appears, click on that, and you character asks that NPC "Excuse me, what is this red building?" and the NPC knows which one you're talking about, and that you asked him or her, and can possibly answer.
You get into some crowded space and a bunch of NPCs block your way. You target the middle one and hit [SPACE] again, picking "Please move aside." The NPC looks in your direction and bawls out "Don't talk to me, you dirty Orc.", so you hit [SPACE] again and pick another option, this time an action - "[Push aside]". Your char does so, and the NPC thinks better than to pick a fight with you. Still, you just made an enemy.
You walk up to an NPC in an empty, dark side street, hit [SPACE] and say "Give me ..." and as a second option "... all your money and valuables." The NPC looks at you and answers "I don't think so.", while looking around if any help is nearby. You draw your weapon - still in dialogue mode - and new options appear, "Give me your stuff or I'll cut you down." The NPC, now visibly more nervous, do as he's told, but as you run away from the scene you hear him screaming "Help! A thief! Somebody stop him!" behind you. Some NPCs you see when you approach the main street seem to react to that, others pretend not to have heard it.
You walk into a bar, and see an NPC you know, Olaf the Grumpy, sitting across the room drinking. So you hit [SPACE] - without targeting anything or anyone, pick "(Call a person...)", then "Olaf the Grumpy", and then "Greetings.". You char says "Hello, Olaf!" into the room. Olaf, still on the other side of the room, looks up in your direction and shouts "Hello old buddy! Come here, sit down, have a drink."