First rate devlog as always!
I'm particularly intrigued by your dialogue system as I've created similar systems like that in some of my own projects. The branching paths has a nice and practical flow to it, but -- especially seeing how small the game is going to look on the Playdate -- I would suggest simplifying the dialogue:
Instead of:
"This is a Liberty class freighter. Range is 1500 meters. On a course of 90 degrees. Ship is moving at 9 knots."
I would simplify it to:
"Liberty class freighter. Range . . . 1500 meters. Course . . . 90 degrees. She's moving at 9 knots."
But because that then looks almost a bit too plain, you could make it both practical and interesting by adding a Reaction branch before your Class Branch. Examples:
"First target on our tour! Liberty class freighter. Range . . . 1500 meters. Course . . . 90 degrees. She's moving at 9 knots."
"Yet another one . . . . Liberty class freighter. Range . . . 1500 meters. Course . . . 90 degrees. She's moving at 9 knots."
"Apparently unprotected . . . . Liberty class freighter. Range . . . 1500 meters. Course . . . 90 degrees. She's moving at 9 knots."
Of course, to have authentic reactions like that, you'd have to check to see if certain conditions are met.
IF FirstTargetOnTour = TRUE THEN
Reaction$ = "First target on tour!"
ELSE
Reaction$ = "" (none or something else)
END IF