http://www.youtube.com/watch?v=WTwqe07VBoo is the link to the full gameplay trailer and at about 6:30, jensen talks to a bartender. The screen still zooms in, but the bartender keeps typing at a screen to his side. i hope dialouge looks exactly like this. Along with the facial expressions, it honestly made me feel like i was talking to the bartender, and i wasnt even there. Agree? Disagree?
forgetting about the fact that that youtube video is out of sync with the soundtrack, it doesn't seem appropriate for Skyrim. 90% of the dialogue seems to be activated by walking around, without any player choice as to what to say.
As for the other 10% where the player chooses you are proposing that a system which categorizes all player dialog into:
Advise
Insist
Pinpoint
Is somehow an improvement over Oblivion's NPC interactions? At least with Oblivion you occasionally had some interesting conversations with NPCs.