* Under the moon abandons ever going to the Winch.
NPCs know a bit about keywords, I am assuming. If they could detect certain words out of a phase that they do understand -much like a search engine-, then recycle them back in the from of a leading yes or no question, that would be a giant step towards greater understanding and realism.
Example: to NPC "Hello, Harn, I was on my way to the Magic shop to finish this quest, but got lost. Do you know the way?"
Harn would gather all of the words he understands out of that phrase and plug them into his list of responses, then chose a follow-up question to narrow it down. He knows 'hello' as a standard greeting, so ignores it for now. He knows 'way' 'magic' 'shop' 'quest' 'lost' and 'do you'. Now, he is obviously not going to understand this question as it is, so he grabs up the words and compares them to his list.
'Quest' and 'do you' would fit in with asking him for a quest, but that is only two words, so gets a low hit number.
'Do you' 'Magic' and 'Way' could lead to info he knows about the Glyphs. Three hits. Getting closer.
'Magic + shop' 'do you' 'way' gives him the cue to give directions, but he is not sure yet, so replies: "Hello there! (as response to your hello) Are you asking the way to the Magic shop?
Now, if you were not asking to go to the Magic Shop, you say no. He then goes back to his list of matches, and asks about the next most likely or asks you for more information on what you want. Even if he does not know what you are talking about, it gives the illusion of intelligence.
But we do want to go to the magic Shop, so we say "Why yes I am."
He picks up on 'why' and 'yes'. Given the question he just asked you, he picks out 'yes' as the keyword, and responds "Well, that's easy, you just go past the old yeller groffel, ya know the one Trayosk used to own. Though come to think of it, he does not have the little beast anymore..."
And yes, I understand how time consuming that would be to create. Perhaps that is what is already intended.