If you had infinite possibilities for interactions, then you would have an infinite number of outcomes that would require the game to do something it doesn't have code or assets for. You would have to funnel the infinite possibilities of the conversation back down to the handful of options that feed into the planned game, which would have infinite ways of being awkward and making no sense.
This might be possible for an AI driven text adventure game I guess, but I can't imagine it would be good... Or bad, or interesting, or anything at all because the artistry would be non existent
Exactly this. I think I remember an interview with the woman (yep) who originally coined the term for herself and her online support group of sorts for people who wanted to better themselves. She has had to watch it morph into what it is now.
Link: https://www.bbc.com/news/world-us-canada-45284455