I am not really that excited with Skyrim as I have not played that franchise yet but I have a couple of facts with what happens under the hood. I am studying about the dialogue generation in the game's interface and do you know that all dialogues generated already took the free form? Which means that the game makers did not write any of those lines but had an engine to do it for them? Though they had some intentional dialogue lines which ensure that the story still goes as planned.