Hell. Yes.

I've been writing about this extensively in various areas, if you feel like reading some half-formed ideas:

http://www.electronicbookreview.com/thread/firstperson/thirsty (http://www.electronicbookreview.com/thread/firstperson/thirsty) is my essay on the subject from Second Person.

http://gameplaywright.net/?cat=31 (http://gameplaywright.net/?cat=31") has links to my posts exploring the idea a bit further at Gameplaywright.