MCA has talked about dialogues getting in the way of hot fireball action before, so I don't think his answer was just about bringing new technology to conversations.
I doubt there was anyone who didn't like the facial expressions in Bloodlines. However, in my opinion text descriptions are better because they're much more flexible and can be used in many other circumstances too (when entering a new area, for example, like in this screenshot: http://www.basiliskgames.com/Screen5.htm)
Prelude to Darkness managed to make the descriptions both easy to read and elegant. They fit perfectly in the text boxes and worked really well. http://www.zero-sum.com/walkthrough/pics/screen148.jpg