I was hacking on something similar. It could be called a collaborative story-telling adventure game or something. My idea was to parse natural language text not "commands". The game manages locations and objects. This is for story-telling roleplay. No stats, levels or monsters (at least no self acting ones).
The prototype is nearly ready (Object and location creation lacking). But i am not sure, how far this can go. Natural language processing is quite interesting. Check out what the MIT did recently: http://www.trnmag.com/Stories/2005/032305/Tool_turns_English_to_code_032305.html -- http://mail.python.org/mailman/listinfo/python-list