Yes, NPC 'emotes' and, more importantly, reasonably intelligent reactions to their environment definitely should be in. After playing both Assassin's Creeds, any game that doesn't have a comparably reactive world feels kind of... bleak to me. When I put a corpse in someone's bed, the least they could do is scream or poke or, I don't know, roll their eyes and kick it out, whatever - anything just to show that they care... even a bit... at all... :[
And while on the subject, I think that the Player Character should occasionally show some signs of life as well: shift weight, examine fingernails, dust off a sleeve, et cetera - just an innocent aesthetic fancy of mine, but always better than being under the impression thoughtout the entire game that the character I'm playing is a robot entering hibernation mode whenever left to its own devices for a longer while.