I know there are certain Acts that were written in order to make a "story mode" of this game, but I was wondering if anyone knew what all that would entail. Is it just a booklet of flavor text to give context to the random quests or is it more involved than that?
I think there is flavor text for the random quests but during the actual dungeons don't expect a narrative driven story. The 36 random quests to my knowledge don't have an overall narrative running through.
I asked DIG and they said the following a few months ago.
The point of Darklight is that it is a "Story generator" as a player you will have to put some effort into it, it creates memorable situations and sometimes quite funny as well (such as the pious Exorcist which is obsessed visiting the whorehouse or the alcoholic Necromancer).
That said, the game will be released with ACT I of the story arc so you will be able to unravel some of the mysteries surrounding the Accursed.