I'm not sure ME was any better, but the character interaction in ME2 is extremely binary. If you talk to them enough they'll give you a loyalty mission. If you do it, they're loyal. Dragon Age was sort of the polar opposite, in that you have to shower your teammates with gifts so they stop hating you.
I've never been crazy about ME's conversation system, though. I do prefer choosing between lines and trying to figure out what'll be more 'renegade' or 'paragon' based on the character I'm interacting with and the line itself. Here it's more 'point up to paragon' and 'point down to be renegade', without much consequence to your choices -- if you're picking the choices on the right-hand side you'll move the conversation along, if you choose one of the colored choices on the left-hand-side you'll solve your problem somehow (at least in ME1 you had to invest in conversation skills).
Replying to you and Scott_Arm at the same time.
ME1 was sort of a middle ground between the DAO system (makes sense as an evolution/improvement of ME1 system) and ME2 (the dumbed down ME1 system).
With ME1 your "approval" or "acceptance" rating with teammates could go up or down depending on whether your conversation choices fit in with that particular person's personality. It wasn't as extensive as DAO, but did at least require you to think somewhat about what makes that person a person. What makes that person tick. In essense it made each of the characters in ME1 feel more like a real person.
Contrast this with ME2 where it really doesn't matter diddly squat what you say. Yes, you can then talk to them after their their loyalty mission to find out their backstory, but at this point all the NPCs are basically cardboard cutouts with a paper backstory glued to it. You can't even say the wrong thing or anything inappropriate to make them NOT reveal their backstory. Be understanding, be a jerk, be schizophrenic, it doesn't freaking matter.
Romance also follows this. ME1 you had to actually work somewhat at getting them to "fall" for you and the choices weren't always the most obvious one, once again making you think of them as a person and try to figure out what makes them tick. In ME2? Yah, do whatever, say whatever, as long as you don't turn them down they'll fall in love with you. /yawn...
Conversations in the rest of the world follow the same. There's no illusions that what you say actually have any meaningful impact on anything. There's no convincing the council, much less other alien races, that Humans are deserving. There's no convincing anyone (like your own race) that you aren't cuckoo and there really is a big imminent threat to the universe. There's no big choices like whether you want to save a race or make it extinct (rachni). And that's just a few examples of some of the things that gave the illusion that you were having an impact on the universe.
As I said in the PC version of this thread...
In ME1, it's like combat was just there to give consequence and perspective on the story and your actions in the story. It was another backdrop (in addition to all the character developement and relationships) to flesh out your character. And important story elements were interwoven with the combat.
In ME2, it's Combat. And then everything else as fluff and filler with virtually no meaning, no involvement, no illusion of developement of your character...
If this had NOT been labeled a Mass Effect game, I probably would have liked it for what it was. But by being Mass Effect 2 (a sequel to a promising first episode) there are already expectations built up. There's something you can't help but directly compare it to.
And in almost all ways ME2 is a far worse "game" than ME1. Except possibly for combat. But even in that aspect I find combat worse as there is no significance for it. There's no value given to it as there was in ME1.
Regards,
SB