He talks about it here:
JM: I play games to do things I can't do in real life. Do you think games have become too real? If you were to do Shenmue 3, for example, would you take the same approach and make it super realistic, or would you take a different approach?
YS: The concept for Shenmue 3 already exists, so... [Laughs] The world of Shenmue 1 and 2 expanded outward. So, for example, in the original games, of all the data used for dialogue in the game, the main characters' dialogue was about 20%. The remaining 80% was dialogue by characters other than the two main characters. But Shenmue 3 doesn't expand outward, but inward. A lot of the dialogue is used for the main character and especially dialogue with Shenhua. They talk about a lot of different, deeper things. For example, and I can't say too much, but here's an example.
This is not actually in the game, but as an example to give you an idea of what I mean by deeper dialogue, when Shenhua and Ryo are at home, Shenhua will ask Ryo if he would like to drink tea or coffee and the player will select one or the other. Or, Shenhua will ask Ryo a hypothetical question like: "There are four animals; a monkey, cat, dog and bird. You are crossing the river but you need to leave one behind. Which one will you leave behind?" And the player has to choose one. Shenhua will ask lots and lots of questions like these and the answers will get stored in the game and affect the outcome of the player's relationship with other characters. It's like a personality test. For example, the person who leaves behind the monkey is the type of person who leaves their wife.
TH: That's scary. [Laughs]
JM: So it's more organic, and very contextual. Personally, I would leave the bird behind. The bird can fly across the river.
YS: It's very deep. I think it will be very interesting if it happens.
http://www.1up.com/features/disappearance-suzuki-part-2
Very interesting indeed, one problem I do see this, and this is of course in theory and based only on that article, is that this could result in the usual player choice problem of not seeing the puppet strings vs. seeing them. Hmm, thought for food. 
