You're tripping!
In a way, yes; it showed the way for their later experiments. In any case, the implementation was different from the sort of thing people seem to talk about now. It was at least vaguely connected to the story and seemed to flow from the situations into which the characters were thrown, rather than existing for the sake of pandering to some sort of soap opera/dating sim instinct with an infuriating veil of respectability thrown over it by the dev/press/gamer circle church, which is what it collapsed into after BG2.
Planescape did it tastefully and to the greatest effect wth probably even less than that, again, by developing it in connection to the story rather than with dating sim sensibilities (that many seem to be asking for in PE).