Roleplaying level? It's over 9000!
Seriously, I love my group. Everyone has strong personalities and motivations. Dialog word choices and vocabulary would immediately tell you what character was talking if it was just transcribed, and for the ones that do it also an accent/way of speaking. Personalities are full-fledged, with flaws as well. We give out little "good RP" bennies and players who have missed the session sometimes still get them because they have such a strong personality that someone chimes in how they would respond to something and we all nod knowingly. We "pose" during combat, describing the attack and effects, and character personality affects tactics. We often do sessions without combat, occasionally with minimal dice roll of any type. We had a memorable session that ended up being nothing but great intra-party RP over a night of watches. Not at all what I had planned for the session but it was great.
Part of me wonders how much of a correlation there is between frequency of playing and amount of roleplaying that a group does. For example, I can see your session as something that might totally be taken in stride with a group that met weekly, and there would still be room for some feeling of campaign/character development. On the other hand, for a group that meets only once a month, and not always monthly at that, an entire session spent role-playing a night of watches might be a huge let-down due to lack of progress or development in the campaign.