I do agree with a lot of your comments oldmariner. I did like Dreamfall but was very disappointed with the interface & the fact that the developer fobbed off the cliff-hangers by saying that there was a complete story within it. Yes! there was but it was overshadowed by so much else unanswered.
I think it came out at a time when developers were keen to get their games produced for the consol market (I think it came out on XBox as well as PC) - but as has already been said in the past you end up with a game that doesn't appeal generally to consol players & sends the AG fans who have bought a game on the back of a previous true adventure e.g. The Longest Journey up the swanee!
But, it's not the only game ever produced that didn't get a follow up & I'm now very reluctant to buy anything episodic unless the story is complete!