I think the text parser is great, and provides some wonderful flexibility for things like commands. With some development, this could end up providing some of the same awesome level of flexibility of Adult Interactive Fiction text games.

The one thing that might help provide better overall dialogue would be a mechanic similar to that used in many cRPGs, branching dialogue tress with multiple options. It would be nice if there was a conversation mode so that we could have more in-depth dialogue with NPCs. This would allow for a much greater depth of characterization and development than simply working off the text parser.