There are very few RPGs out there that actually have realistic dialogue, but none that are open world. Games like the Baldur's Gate games and KoTOR have realistic dialogue, but these are of course games with a set path so it is obviously easier to accomplish realistic dialogue.

The dialogue wouldn't be as repeditive if people wouldn't say anything unless you manually talk to them.

In Skyrim, I get annoyed by the fact that every time you pass by someone, they always just HAVE to say something. From guards calling you to a sneak-thief to the children who talk so much smack and you can't do anything about it. Also, the thing people say is realistic too. Women talking about how they want a man to take them away; Maven Black-briar claming that your bothering her even though you didn't acknowledge their existance; "Do you get to the Cloud District very often? Oh what am I saying, of course you don't."; "I'm 11 years old and I can take you."; "What are you lookin' at? I'm not afraid of you. You know, even if you are my elder."; "I thought adventurers were supposed to look tough."; "I bet my papa could beat you up."; "I ain't done nothin'."; "Come to chat with an old woman, hmm? Do your good deed for the day?"

Like wtf lol. In real society, people rarely will say anything to you and won't stare you down when you pass them by. I'm just speaking my mind with this and looking to see if anyone else shares this line of thought or like the dialoge how it is.

Don't care for it really. It's funny sometimes, they reveal locations on the map sometimes, and it also comments about how you are progressing in the game. I guess in the old days, there just weren't enough people for them to be indifferent at strangers.

If anything it doesn't comment enough on how you progress in the game

"What do you do, fetch the mead?
"No, I've been Harbinger for some time now"

Yes, I really do hope that in a future patch NPC dialogue will be tweaked so they wont talk as often.

Also, things like: 'I hear you arrived just in time for the execution, that must have been a sight' (paraphrase)
Look woman, Ive lived in this city for a year, I come to your shop every week to buy and sell stuff, Im a thane here now and all you talk about is that bleedin execution?!

NPC's need to acknowledge current events or at least stop spewing their one-liner when it is no longer relevant in any way.

Its all just a bit sloppy and shoddy.

You don't expect all of them to know, although becoming thane should be know to everyone in the hold. It's quite funny how you need to remind them that your a thane and they should let you off.

I'm using a mod that turns off player acknowledgments. The annoying part is they are not just random greetings, but painfully looped random phrases about nothing, that realistically should be heard only once. That girl in Whiterun telling me she is not the best blacksmith every time I wanted to use the force was too much.

Oh god yes, that woman is absolutely among the top of my list of most annoying NPC's ever.
She. Just. Will. Not. Shut. Up.
I wont train smithing there anymore, not since my first playthrough.

I don't mind the pvssyr much at all. What bothers me is the fact that the pvssyr...the pvssyr never changes.

Become the Thieves Guild Master, and no one even really recognizes; it has no impact on how you are treated. Become the Archmage and that stupid Orc Librarian still yammers at you like you were some first year http://www.youtube.com/watch?v=oRtrqhVe3Ao.

It all comes back to how choices really have no impact on the game. Sure there is lots of talk about how this group doesn’t like those people; this race is despised, those favored. But when it comes down to it, your character has no race nor does he appear to display any type of status. You might as well be a wire frame entitled "The Player".

I wouldn't mind if they did't know, but you'd think that one guy joining the Companions wouldn't be as bigger news as the Leader being replaced

But it happens in every game. Even if you scripted 10000 different random comments, it's going to repeat. Classic example is the flaw of the radiant quest system in place in Skyrim for miscelleneous tasks.

There is a mod that stops what the OP is talking about. It has several versions so it depends how close you come to them, I think one requires you to actually bump into them.

No, not really.
In Morrowind we didnt have this problem, nor did we in Oblivion.
The problem is that the NPC's only have one line that they spew ad nauseum.
I actually miss NPC's pvssyring about mudcrabs after Skyrim's mind-numbingly aggrevatingly annoying one-liners.

Could try this - http://www.skyrimnexus.com/downloads/file.php?id=1928

What so you don't say hello over and over again everyday?

This ^^^
I forgot to include that.

They don't have to repeat, they can be broken into groups that reflect the PC's progression through the story. That thug in the Thieves Guild that keeps threatening you should stop once you are the Guild Master, the Orc Librarian should show more respect to the Archmage...

Oblivion had the same problem too... I mean a guard coming up to you and feels he must make the remark:

"Look at the muscles on you!"

Yeah, I'd agree with that. But that's not the whole system in flaw. If you look at some other factions it does happen.

I don't say "Hello, I am Jagar Tharn. My life goals are to take control of the empire through fiendish liasons with Mehrunes Dagon."

It is pointless to compare using words to regurgitating phrases. Basically it's the same as the Oblivion NPCs who gave a short about me monologue the first time you initiated dialogue. Then they never did it again.

In Oblivion and Morrowind it happened in every guild, so they shouldn't let their standards slip. expecting the same quality as previous titles isn't unreasonable.

No, if you meet the same person 20 times inside a 10min window when your going back and forth in the market buying and selling stuff. I really do not want to talk to that same person who just idles in the center of the market.

Yes it is, there is no system, it appears to be a random choice from a pool with no adjustment for the PC's progression.

Furthermore, some of the guards comments (enchant my weapon, your honeyed words, sneak thief) aren't really appropriate unless you are witnessed enchanting, try a speech check against them, get spotted being a sneak thief.

I think in some cases, they are forgetting to set certain dialogue flags to clear based on what we do. It gets pretty bad when you help out an NPC and then do something that angers them, makes them seem bipolar when they greet you with "hey buddy", and then when you stop talking they tell you to go away.

And the stats to trigger them are a lot lower than in Oblivion.

Are you kidding me? The guards know your in the DB, when you become one. They comment on you being the Harbinger. Also the various people comment on your choice in the civil war. Have you even played the game?

I think you are arguing my point now.

Why should the guards know I am the leader of the Dark Brotherhood as soon as I become said leader? Mages Guild, sure; why not.