It's mainly an excuse that those who favor a hack and slash, shallow experience use to dismiss gameplay concerns.
"Hey, it seems like the NPCs were static and not lively. The dialogue trees were weak."
"Todd mode, his high speechcraft causes them to be like that. Alpha build!"
Funny, I don't recall having ever seen that exchange, or anything like it. I recall people saying the combat looked too easy, and Todd Mode boosted stats were the explanation, which seems to have been verified by the open demos at conventions, but never anything like that.
And then again, I don't recall anyone "favoring" shallow gameplay in the first place.