So these short stories

You can also read Hemingway's short story The Killers. Much dialogue; not one wasted word.
 
Dialogue is integral to any story, it personalizes the characters...makes them human to the reader. Avoid being stilted when writing dialogue...write like people really speak...pauses, colloquialisms, dropped 'g's, an occasional 'y'know'...depending on the character's persona. It makes for more interesting reading.
 
I see 2 extremes; this would be the opposite extreme than the one you mentioned

I don't see them as equal extremes, though. The extreme you're talking about is actually fairly rare in my experience. Not the script format being rare so much as the dialogue being rare. I see stories with little or no dialogue at all at least ten times as often as I see a story with excess dialogue.
 
You can also read Hemingway's short story The Killers. Much dialogue; not one wasted word.

I just checked this out. They compare this to Quentin Tarantino's Pulp Fiction and other works, even though Hemingway wrote this in 1927....thank you, will read this later today!
 
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