For the most part, this is an aesthetic argument and difficult to deal with objectivly.There are various things in EoB1 and especially EoB2 that brought the world alive, that I missed even in LoG, such as being able to recruit NPCs, "cutscenes", some dialogue.
What you might not like in a cutscene, I might like and vice versa.
Cut scenes and dialogue is highly controversial, I for one am glad they didn't implement more of it.
The dreams you experience were an interesting idea in so far as they were relatively easy to develop but the emotional impact was there, as is was atmospheric, mysterious and left you with more questions. They also fit the game - a real dialogue can get hard to text right, the whole mood of the dungeon can change etc.
Legend of Lore pulled this off because the whole game was structured around a narrative.
Grimrock goes the Dungeon Master way where most of the emotional action happens in your imagination.
The question is also: on a playthrough, will it get in the way?
The dreams already bugged me a bit, as I knew the whole pointe and basically just skipped 'em.
@new races
Pulling this off might be actually hard. The design is done in a way that new races will find little room to shine.
There is already a race for mages, warriors and rogues along with their corresponding attribute. Humans are versatile and fit everywhere.
And new traits are hard to implement; technically, but also from the POV of game design.
I mean, you might have some nice portraits and effects, but, for instance, an even stronger fighter might feel unimaginative.