Yes, this is absolutely true. People do get confused and overwhelmed by choice. Either that or they're completely unaware that any choice exists.

By "People" I mean I'm talking in averages here. The target market for Fallout is tiny and much more focussed compared to that of, say, Dragon Age.

Also, most people only play through the game once (if that), so there's an almost philosophical question about whether choice of outcomes actually matter if the effects are only going to be seen once.