Looking at the #MUDChat in #CoffeeMud: http://www.coffeemud.net/guides/MudChat.html
That is pretty nifty, and if the mob gives an indications of what the options are (maybe using a prompt or inline highlighting of a description or about speech), it works pretty well!
@maiki i've simulated such a thing before with a giant list of aliases in #mud that support aliasing. not true menu but can behave the same