Single Status Update
I really hope the "in-level dialogue" stuff is dropped for future games. It wasn't enjoyable in Lost World largely because the Deadly Six were boring, unfunny cliches, and it isn't enjoyable in Forces because everyone either spouts empty dialogue at each other, states the obvious by describing what is happening on screen, or needlessly reminds you of what your objective is supposed to be (even though SA2 already did this more efficiently by providing a short blurb on each level's title card screen). Colors is the only one of Kishimoto's games where I feel like the in-level dialogue actually works because Eggman's announcements actually feel like they're a part of the environment (the fact that you can typically run past each announcement before they've even finished adds to this).
At least they give you an option to turn it off.
I really like it in concept, for a game that's going for what Forces was going for but... it didn't amount to anything. It should be coupled with actual visible stuff for additional storytelling that can happen in-gameplay, but it's just used to imply a story bigger than what you're doing on the cheap. Because none of it ever relates to you, it's completely forgettable.
An example of how it could've been done better - you go to Space Port to investigate what Eggman's up to at that particular area, very basic pre-level talk. You shortly get a vista view of a ton of spaceships in the background, as the radio chatter comments upon this discovery, and instructs you to continue searching the base. Shortly after is a crackled transmission that sounds like Sonic, which HQ determines to be from outer space. Shortly after this, Vector announces a change of plan, we're taking one of those rockets while the going is good. You stop going the way you were headed and leap onto a path that's heading into the background, towards those shuttles you saw earlier, and the rest is history. Obviously this all occurs at pre-determined points still, but it's just... more involved.
As is, all the "in-level narratives" just talk about what the other characters are doing, and most issues they have are solved just before the end of the stage, which usually comes off as very jarring considering the stages are 2 minutes long lol.