[...] because interactive and non-interactive forms of storytelling have different narrative needs and require different approaches.

Which can be blended and remixed successfully. The follow-up, Prophecy, is a clear testament to that (while another family member, The Darkening, was a total disaster). The only reason Wing Commander IV feels rough around the edges is because of the still immature emergent multimedia technology, some problematic game mechanics, and related design as well as narrative choices.