Unless "the conversation" means simply working within a shared fiction, then I don't think I agree with this.The conversation is the heart of RPG play. The players, GM and PC, come to the table with their individual interpretations of the rules and with the mechanics and expectations appropriate to their various roles. The game then proceeds to recursively explore (build, etc) the setting through the back and forth of conversation where the GM describes/frames/explains and the players interpret/react/act and then the GM interprets/adjudicates/changes. Rinse and repeat with the occasional infusion of fortune to keep everyone on their toes. Obviously, this process is variously bound and directed by the nature of the specific system being used, and there is a lot of detail on top of this, but the conversation remains in all cases.
The last time I played classic-esque D&D, it was a session of White Plume Mountain, using my own AD&D variant for the PC building rules. This wasn't a game in which the setting was build through back-and-forth as you describe. There is a pre-authored setting/puzzle: the map and key. The players are trying to solve/beat it. A lot of the GM's narration is revealing bits of the map and key, as prompted by the players' action declarations about moving around and looking around.
I don't think the idea of recursively exploring, or building, the setting is very applicable in a lot of situation-oriented RPGing either, like Prince Valiant or Cthulhu Dark or Wuthering Heights.
I'm not sure what you've got in mind here. I mean, I don't talk about "narrative play" - it's a category that I see used, but am never really sure what it means (eg it seems intended to encompass both Fate and Burning Wheel, two RPGs that don't seem to me to have much in common beyond being RPGs).When we talk about narrative play we're really talking about a game/players that supply/enforce/scaffold a certain framework to the conversation, with the framework (dials and buttons, manifestos, directions, whatever) to some extent equating a description of a desired play outcome or experience.
Again, I'm not sure who your target is here.I think a lot of RPG theory simply ignores the centrality of the conversation and suffers for it.
The main theoretical discussion of RPGing that I'm familiar with is from Ron Edwards and Vincent Baker, and both are very attentive to questions of who is supposed to say what, who is actually saying what, and what is the suite of processes, expectations, etc that are determining who is saying what.

