Agreed.
I dont think I have played a game in ten years where the dialogue irritates me that much as Skyrim's does.
Its not the actual dialogue itself, its he repetition.
Its the fact that you only need level 30 in a skill for guards to make random comments.
Its: I work for Belethor at the general goods store.
The weakest point of the game by far, as the annoyance factor does keep you from playing in the end.
I agree, the dialog is really starting to make me lose interest in the game, I've only advanced the main quest about 1/2 way.
I don't agree that the repetition is the worst part though, because if it were intelligent dialog I wouldn't mind hearing it often.
ie: I could hear "Hail Stormblade!" from stormcloak guards endlessly, and I wouldn't mind, but if I hear "hands to yourself sneak thief" or "go fiddling with any locks around here and we're going to have a real problem" from a brand new stormcloak guard, when I haven't picked any locks or stolen anything since they've been put into power (BY ME), I just lose interest, its really really lame. I'm killing a hostile altmer conjurer, during the death blow she says in an annoyed voice (like when you run into someone in town) "be careful".