I think that there's a disconnection between GMing styles and what Shadowdark could do well.Yeah, that is a bad DM implementation. In my Shadowdark campaign, there's been one round of combat in the last two sessions, because the PCs are being cautious and only fighting when they feel guaranteed of victory.
First off, Basic D&D adventures from the early 80s are largely monster hotels. I think there's some gaming revisionism that says people were incredibly clever, mature players back then. But let's be honest, we were 8 years old.
Second, the 2-hour convention games run by Lurking Fear were not intended to be cerebral puzzles and tense negotiations.
Until I see real content created that suggests it should be played differently, I can't appraise it. Even the official Cursed Scrolls material is pretty much "monster lair - kill the monsters."