It would be amazing, but good luck coding this type of thing. I have a headache just thinking about it!
Makes you wonder though...I suspect that very soon we will have game engines capable of this, and game worlds where things like this can take place. When that happens, I may cease to live in the real world...
It's not that hard, really. It's just putting another variable on items, and using the same kind of coding that's used for noticing when the player comes into view, only checking to see if they have that item equipped. It's essentially the same thing that happened in Morrowind when the player was naked or when you talk to a guard while carrying stolen goods, only now there would be a selection of dialogue depending on what item the player had equipped (Shirt, Robe, pants, armor, hat, helmet, sword, etc.)
Essentially in terms of code this would be
NPC sees player
NPC checks the equipped items to see if his name is on the "stolen from" list for any items
NPC identifies the variety of item
NPC engages the player or calls for guard while playing an audio file stating the variety of item.