I think the intent is "people don't like reading and we could appeal to more people if they didn't have to read wikipedia paragraphs". But then again, I'm a cynic.
It's supposed to be a cRPG and to me this is just in the way.
Imagine, for example, if InXile wanted to do a correction in the dialogue after the game has been released. That means they have to reanimate that part, lipsync it and hope that the voice actor is available so that they can get him back behind the mic, as well as pay him for his troubles. You can't do a simple edit in the text if you needed to correct a contradiction or an oversight or if you wanted to add something, like if there's DLC and there's choice and consequence there, it'd be far easier to have base game NPC's react to it when it is just text than when it is like this. There's also the question of how much money, resources and time was spent on hiring the voice actors and animating the dialogue part.
This dialogue system does not belong in a cRPG in my opinion.
For example, I messed around with RPGMaker once and tried to create an RPG with choice and consequence and whenever I playtested it and I noticed something was wrong in the dialogue or something hadn't been brought up or that there needed to be another NPC to help bring context to the situation then I could easily change that. I imagine this engine is a bit more complicated than RPGMaker but the point still stands that if you want to flesh things out at any point during the development or even after the development it is one hell of a lot easier when there's no voice actors you have to take into account. (Oh and the project was awful and I digitally purged it from existence
)
To be fair though, I would love it if I could have the best of both worlds. But even if the rest of the game is amazing and the dialogue text and choices is great and never needs any kind of post-launch edit, the dialogue system just looks... Stiff and awkward, it does not feel like a conversation is being held, it feels like an animatronic puppet, a very well detailed and animated animatronic puppet, stiffly expunge the lines it has prerecorded as you press the appropriate buttons.
ARPG's are more fitting for "real conversations" so now that they got Microsoft funding maybe they ought to move over to that because to me it just seems like they are desperately trying to make cRPG's mainstream. And I just don't think that'll work. And if it doesn't, then what are we left with?
Hopefully something good but I haven't heard any details as to the skills/traits/stats/perks that make up a roleplaying game so it leaves me worried that
this is the thing they want to showcase.