You say this is a, "slap in the face to TES fans," but have the previous games actually given us more choice in what we said? I'm all for nostalgia but the conversation topic system of previous games was widely maligned in its time and I doubt it would be better received than the current system.
It's true that the Elder Scrolls focuses more on exploration that NPC interaction, but there's a balancing act here. FONV does far more with NPCs and factions, but the world is much smaller. Bloodlines, an excellent RPG, had great NPC dialogue but it was a very tight world and many areas were railroaded. It's give and take, and personally I enjoy the varie
That's kind of the point, Donner. Daggerfall's text parser wasn't bad for the time, and the worldsize. That was 1996. It's 2012 and -things have not changed one iota-. Except that instead of a text parser that can at least be hacked into to add options, we have vocal just about everything, that can not be changed without studio resources and a lot of people willing to try and voice act. They keep saying they start from scratch for each game, but so far they haven't really made any steps forward, at least as far as scripts, text or PC-NPC interaction, quest branching, etc. The bling and the graphics, sure. But those have never been the meat of CPRG's. Story is. And you and I have been here long enough to see how many 1 step forward/3-5 steps back they have made over the years and the releases.

Granted, the level designers have done a magnificent job, for the most part (Blackreach and the attached other dungeons, Sarthal, etc). But the Radiant Quest system was either crippled, or it needs some serious tuning; it makes the DF parser look =good=. This was supposed to be the End of the World......and there was no indication of it. No threat. No worry at all from the NPCs. Not so much as lighting changes in the environment to creep you out, make you feel like there -is- trouble. For all the threat that Alduin and the dragons have proven to be, you could just as easily have a starling infestation and get the same danger level.
Hopefully the next generation of console will have at least the illusion of cojones and a couple of gigs of ram to be played with. At least that factor would be improved