Its the lack of soul that gets mentioned a lot, and I honestly agree, the lack of differing reactions of the factions based on their relationship with you is one example, there all the same, whether they like you, hate you, are at war, ect ect and even seem to ignore whom you are as well.
For example playing as the Kingdom of Altar as Relias and Cersa gives her standard greeting... I assume she wolud be rather pissed off at Relias at the current time, but I guess she forgives easily.
Galactic Civilizations II got this right, each faction's leader had their own personality for differing situations and gave the player a variety of greetings depending on the situation, past interactions, whether they liked you, or hated you, and what race you were, it was definietly lively. Not to mention humorous. "Did you see what I saw in the latest edition of Torture Daily Magazine?" LOL