I first got New Leaf for Christmas this year, and it is tons of fun. But i am starting to notice an issue with my villagers more and more. They seem to do absolutely nothing aside from occasionally giving delivery, fetch or visit task, and giving me free stuff. I have seen only two instances of villagers having a conversation with each other since I got this game, have only been asked to play hide and seek once, I've never seen the time capsule thing show up, and a lot of the time, and number of my villagers seem to be just standing around most of the time. Is there anyone else having the same issue, and if so, are there any leads to the probable cause or solutions?
There's nothing wrong with your game. You're just starting to notice the repeating aspects of the game.
Time capsules and hide and seek are less common favors. Make sure that your letter inventory is actually clean when talking to villagers since time capsules go there. The only way I can think of to influence this is to take advantage of days where you have
good relationship/friendship luck! You might be able to see more varied conversations if you. And befriending your villagers general is good for getting different dialogues, but I'm sure you already knew that.
Also, I'm not sure about your play style, but I'd try logging in several times throughout the day. Sometimes when I talk to a villager in the morning, they won't have any interesting to say, but come nightfall, then they end up giving me a favor. Generally, only one villager per day gives a specific favor (ex. only one will ask for fruit, etc.), so getting more villagers to give you favors mean that you might be able to see the more varied ones.
If you want to see more conversations, try and have your villagers live in the same area (easiest to do if you plot reset). I think they naturally walk to where other villagers congregate, but it's easier when they are already living close by. If you have longer play sessions (half an hour or more) and give them time to walk around, then I find that they end up in conversations more often. If you're desperate, I guess you could always herd them into one area (although they won't be happy about that), dig holes around them so they can't escape, and then wait for conversations to happen.
Sorry I can't really help! There's just no real solution since the issue is with how the game was designed to begin with (less interesting dialogue than previous games, etc.). If you're getting tired of seeing the same stuff over and over again, it might be good to take a break for a while, too!