[filiph]

Author of the article (and the game) here. I didn't mention MUDs because I didn't want to scare away people with more concepts, but of course they are a huge part of what I consider interactive fiction.

I'm not sure if any MUD worked with something I'd call a "fractal story", though. The combat I remember was fun but it was always "you miss X. X hits you." I didn't play all MUDs, of course, so I'd love to know if there are any examples from that era.

[ioddly]

I think most MUDs definitely fall under what you described as "kill bandit," (as do many graphical MMOs), but I do recall a few exceptions. I remember God Wars II, for example, as a game that had more complex and interactive combat: http://www.godwars2.org