Before Skyrim came out I recall one of the features of the much talked about Radiant engine was the NPCs' ability to interact with the PC. Like they would pick up items you dropped, comment on your skills etc., and also challenge you to duels. I've heard the guards comment on my skills (incorrectly mostly), but since I haven't dropped valuable loot I've never seen anyone pick it up, but I also have never been challenged to a duel by any NPCs.
Was this feature left out, or have I just in my 200 hours of game time been unlucky and never had a challenge? Anyone else tried this?