As you've written about this method over the last while, I have thought about it more and more for use in my design. I do not ever just want to run a combat with the text, "Monsters attack!". I think that even random combats should give the opportunity to try and bargain or flee. It may be that these options are rigged towards fighting, but they should still be there.
Since I already want to do that, I think that I might do the main events, that is the ones key to the plot, in the non-combat format. Will that give things away to the player? Maybe, but I can do the side-quests in the same manner (at least the major ones) and it will be less obvious.
I'm still thinking about it, so I don't if this is feasible yet. I can't see why it wouldn't be, though.
I also lan on using some pre-created characters and still give the player the option to create their own. The advantage will be that the pre-created characters have special items or abilities (or something, I'm not sure what quite yet).