Should there be "dialogue" and "no dialogue" categories at Level 1? Or would it be unnecessary?

That does sound like a good idea.

because there are some old runs that don't skip the dialogue

Wait, how do you skip the dialogue?

first skip the dialogue and then you reset (only applies to level 1 iL, in full game runs you can't skip the dialogue)

Honestly I would like having a separate category only for dialogue, before speedrunning this game I thought there already was a category for that but this could provide a neat little challenge for 1