oh hell yeah, I posted long ago about adding true AI to UO and with this, the Squire script and a few others, that goal is getting near.
I too have a suggestion (don't you love how when you submit a script it seems everyone has an idea on how it should be done?

)
An addition to the Sequence of keywords, could it branch out to other lines of conversations?
for example (and a simple one at that)
Player says hi
NPC say greetings, do you know the password?
option 1 = Player says yes
NPC says oh, wonderful, what is it?
Player says password
NPC says oh thats correct, here's a cookie
option 2 = player says no
NPC says I heard a rumor that in Yew there is a man who..........
and it can just get more AI like and complex from there
I have yet to test this out so if this can be done already, please disregard
if not, I imagine I could actually do this if you don't feel like doing so.