I'm all for an actual game editor that would be nice, but when I ask for one all they understand is a map editor, or they think modding is  the same thing. The problem is if you were allowed to insert random stuff the computer would not know what you are saying. That is why programming languages are so small. You would have to have a limited number of meanings you could assign to blanketed statements. All you could do here would have the same meaning for multiple statements. The problem is all you have here is a machine that can add all kinds of numbers, and compare them in it's simplest form. You could allow a rewrite of the current statements.

edit maybe with a grammar checker, dictionary, and a voice recognition software. You would have to set up responses, or actions for every possible combination of words in a language with a understanding of synonyms. You could use the rules of English, reading, and spelling taught in school. Since the average American has a sixth grade reading level it is probably advisable to use that as the cut off limit on rules. Even with this it would still be breakable.

Also note that "flavor text" is exactly that. It carries no function. All flavor text must hang on existing diplomatic options. Adding additional diplomatic functionality must be done on the developer's end.

Same here, I really like the humor that is injected throughout the game.

I like the idea of more diplo choices and flavor text to go with them.  I am not sure about situational text per faction being responded to.  Given the wild number of factions I already have downloaded, that sounds like a lot of work.  It is going to have to accomodate generic or ideology based flavor text to cover various diplomatic responses.  Perhaps each faction could come with a set of possible responses the player could offer to standard diplo offers, like your Lord Kona examples,  That would definitely be a dev change, though.  Still, it would be a lot better than <InsertLeaderNameHere> type responses.

Based on my poor recollection, the basic way the file is laid out is this:

Each diplomatic action has a set of flavor texts.

Each flavor text entry can have a combination of situational qualifiers, such as "speaker more powerful", or "friendly with listener".

Each situation-specific action can be further subdivided by identifying the speaker or listener in particular. So you can say, "when speaking with Drengin and the Drengin are more powerful, say this". However, this requires you to be able to specifically identify the faction in question. This is easy with default races, but until now, was not easy with custom races because we could not include custom-race-specific text along with the race itself.

Each diplomatic action has at least one default text. Additional, apparently randomly selected, option can also be added so you don't get the same annoying line every time. Interestingly, most of the flavor text options in the file have only one entry (indicating a lack of time on the developer's part). There are a few additonal options spinkled in to flesh out some of the race relations lore of the game.

It would not take much for a modder to just add a ton of new variant options.

You would need to create a custom race in XML (as a mod, as opposed to in-game) in order to the use the InternalName tag.

I might try this over the weekend, because i already have a flavortext mod written, but until now unusable.

I hope someone gets a chance to test this before I do, I'm not at a point in my own mod where I want to add flavortext yet but it would be a nice way to add a bit of polish and lore appropriate responses to my factions.

The internal name of the faction isn't the problem. The problem is, the way the game defines each conversation type is by its internal name in the conversation XML. So, if you want the game to look for a First Contact conversation, it looks in the FlavorText.xml under <InternalName>FIRST_CONTACT_MAIN</InternalName> and sees what it can do. You can't make a mod that appends anything underneath an already-existing internal name. Thus, you can't use the append method to make custom conversations. You have to use a mod that replaces the entire file, and has your changes written in alongside the original text.

As far as I can tell, this hasn't changed. No dev has spoken up about how custom conversations are supposed to work now, so the change is ultimately meaningless. Even if we could, we don't know how.

Well, I have that, and mine works. Are you getting any error messages when you try yours?