The flaw is that the majority of gamers don't want to analyze and commit dialogs to memory. Players think in the short-term and how things effect them in the short term. This is proven across platforms, games and even genres.
It is fairly evident if you read any threads with spoilers someone will say "X is never explained." I look back and I can think of at least 1-2 instances of X being explained, not only that, but how X is connected to Y, and how Y is connected to Z.
*Shrugs*
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Good old mindless mases who are obsessed with HALO 2