This is a fun proof of concept for animating cutscene sequences. I think you have a good eye for the cinematic potential of creating scenes. Some of the techniques around mixing 2D and 3D sprites illustrate the kind of creativity used in 90s games to create visually interesting graphics with limited approaches: the pseudo-parallax used at the end of the cutscene comes to mind.
Given the dialog system preview looks really cool, I'd be curious what sort of ideas you have to build on this, given that you mentioned you see there being potential for a fuller experience out of this! Hope you can find some interest.
Thank you for taking the time to participate in DITHERJAM! As a small jam, I really appreciate it. Hope you're able to explore dithering in future projects.