Radiant story is the quest-writing system. The team is trying hard to not "Talk it up" like they did with Radiant AI in Oblivion.
From what I understand, Radiant Story's function is twofold. First of all, it is used as a "Failsafe" for quest-givers. Allowing many of the games' quests to have multiple start-targets. This greatly reduces the chance of breaking quests by creating redundancies in the system. (Example given: If you kill a shop-owner, their Daughter may inherit the business and still provide any quests/services previously available)
The next, and arguably more important function of Radiant story, is to direct the player's actions in a less obvious way, and provide rewards relevant for their character. For example, Radiant story can place quest targets in dungeons not previously cleared or visited, cause the player to encounter certain events (Such as enraged family members seeking a blood-penance for a murder you probably commited) and then rewarding the player with say, a bow and some high-quality arrows, if their highest skill is Archery, as opposed to a Sword of equal quality if their One-handed skill was their highest.
That's just fan speculation on my part though.
From what I understand, Radiant Story's function is twofold. First of all, it is used as a "Failsafe" for quest-givers. Allowing many of the games' quests to have multiple start-targets. This greatly reduces the chance of breaking quests by creating redundancies in the system. (Example given: If you kill a shop-owner, their Daughter may inherit the business and still provide any quests/services previously available)
The next, and arguably more important function of Radiant story, is to direct the player's actions in a less obvious way, and provide rewards relevant for their character. For example, Radiant story can place quest targets in dungeons not previously cleared or visited, cause the player to encounter certain events (Such as enraged family members seeking a blood-penance for a murder you probably commited) and then rewarding the player with say, a bow and some high-quality arrows, if their highest skill is Archery, as opposed to a Sword of equal quality if their One-handed skill was their highest.
That's just fan speculation on my part though.
fan speculation or not, it sounds like a sensible stream of thought. I agree.