you bring up a good point, nice post!
there are two ways to go here... (possibly more, but bear with me)
---just some thoughts---
1st person / the silent hero - the main character never speaks, allowing you to imagine his or her reaction
This works great for Andor's Trail because there are so many choices to make & the quests can be taken in almost any order.
(Varying dialogues would need to be written to cover all the different possibilities we could encounter.)
3rd person / a hero with personality - the main character speaks his or her mind, conveying their reaction
This would work if Andor's Trail was linear and we always knew what the hero was thinking.
---so---
3rd person reads more like a book - telling you the story that was written
1st person allows you to take the role of the hero yourself - making the pivotal choices presented to the main character.
We could write text for both of the paths that the player can take, but...
being able to take quests in any order (in most cases anyway) also makes writing this kinda dialogue difficult.
Moral Ambiguity & Non-linear Gameplay
In closing, when faced with moral choices - dont have him say anything automatically.
(I.M.O. - the choices our hero makes in response to questions asked [or options given] is the highest form of actual "role-playing" on a cell phone today)
but if he can make a comment in passing, about a tough battle or a nice reward... that's cool - it sounds fun!
if we can think of clever things he can say at interesting points in the game - without implying judgement or condemnation... then right on!