Yes - and I think IIs were a good solution to that side of things ... but had the downside that it meant people outside the writing team needed to do a lot more. But it let them get out of the "stock CG" model - both to do more interesting things with the CGs they had, and to do more non-CG in-game things with the game's existing (and quite substantial) capabilities.The community gets blamed for this, but I think we who vocalized dissatisfaction with CGs and IIs a couple of years back were misunderstood by Frontier. While I never found a great deal of "exciting lore" in stories about who the purple princess was dating, that was not what really bothered me. There were two things that I and others asked Frontier to improve:
I'm hoping that for post-Odyssey work they budget for a proper full-time "operational" team for writing and in-game adjustments, so that they can carry on doing stuff permanently without being affected by the release cycle.
On the other side of things, while the personal lives of the Duvals aren't specifically that interesting to me either, it's that sort of story that lets Frontier set up things to happen later - possibly much later - so that looking back it all makes more sense: "ah, this person wants to bring down the Empire because of this thing which happened three years ago" rather than "who are you again?"
The ability to quickly add in little bits of flavour - customised mission text, or NPC chat, or a few minor POIs - would be really useful for that sort of story.