Yeah, it's pretty linear. I'm pretty sure (certain, even) that the only consequences your choices have are to provide you with different/new information (or even just to throw different gags at you, as I believe the candycane question and the "boulder" thing do).
I do wish it was a little less linear, as I'd definitely play it again if it had multiple endings.
An Interactive Story is what this is , at best, However the sound track and the music is what really sets this game apart from the rest. And then you have the soap opera moments where something is about to happen. If you were to tie in RPG elements such as fighting monsters, hmmmm.... Now that is strange. If you go to the developers website they have Quintessence (can't remember the rest of the title) I played it for a bit then kept walking around the town and could not figure the rest of it out.