Earlier quoted context omitted.
Except in those cases it's even more important that the NPCs don't do anything unexpected. Those NPCs are like actors in a stage play, you don't want them to come up with their own lines and confusing the audience. Don't forget there is a certain randomness with 'more natural' and with randomness you're going to invite Murphy to the party.
In many cases maybe. Personally I would love to play a game with a world inhabited by "individual" NPC AI:s, where they can influence the world as much as I can, with no specific act structure or story arc. Some significant part of gaming is risk-free experimentation in a simulated world. The experiments possible are bounded by the simulation quality of the world. More realistic NPC behavior would open up for a lot m…
You would see these factions fighting and gaining/losing territory throughout the game. You could chose to help them or just pass on by, but the actions progressed regardless of your choice.