Indeed.
I've not yet worked out if it's possible on how many times it can be done. However, realizing that, I made the rewards a bit on the weak side. The only things really worth having are the weapons (and only for new characters, really) and the cloak, which has some strict limits to it's usefulness (walking, talking, casting, fighting will make you visible).
And if someone did do the quest, got a funky mushroom, and ended up "changed", I'd think they most likely would want the ability to go back and try to get the mushroom again.
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