Quests in general need a redo...not the quests themselves, but feedback into what is going on story-wise...and a real meaning to the choices. As of right now it essentially is pick the first option until you 'win'. If you lose or essentially come to a battle that is currently impossible to win, reload a previous save-game and wait to take on the quest when you feel you've got a strong enough army.
Kinda takes some of the fun of the mystery of a new quest. They may also need more randomization, I'm not sure but it seems to me for X quest the battles and quest turnouts are the same (loot may change). I think the cave quest...if I remember right...is random depending on the paths you take.
And if you screw up half-way on a multiple stage quest...it *poofs*. If you lost a battle, why does the enemy army then just vaporize?