We're actually arguing for a minimum necessary baseline for what could be considered a "role-playing game." I guess if your 3rd-person talking to NPCs in 1e was entirely limited to "I bluff/threaten/bribe the guard" that could fall below the line.
Presumably your PCs' motivation was money & glory (XP), so not that far frok the players' motivation?
Re third-person vs first-person, I think you can roleplay without using first-person, and in retrospect in my young days I did that a lot especially GMing NPCs I wasn't comfortable playing 'properly' (love interests, say), but I (being elitest) personally tend to regard first person rp as the best or paradigmatic form of roleplay and 3rd-person as a lesser, but still valid, approach.