Yeah the D-Pad style dialogue isn't looking too good, although given that conversations no longer lock you into a menu I'm guessing the change was probably necessary and that was the best way they could think to implement it. I'm wondering if that locks you to only 4 replies at a time though, or if there'll be a 'more' option to cycle through reply options.
Given how moddable the Creation Engine is then it's quite likely that mods will be made for it though, so it shouldn't be too bad.