The other thing they can do is show the consequences of different choices. There are surprisingly few games at really do anything more interesting than a Choose Your Own Adventure book with that ability though.
I tend to agree that games have some fundamental weaknesses as a storytelling medium, though, mainly the whole... y'know, *game* aspect, which only gets in the way of the story most of the time.
I always found it funny how many Exile fans there have been on the board over the years (which is to say... maybe three).
I've picked up almost all their games in sales over the years, though the last one I actually played properly was Avernum, the first Exile remake, which is probably 15 years ago now. realistically I'll probably never play them, but it's nice t know they're still out there doing stuff.