Here is one way to do it.
<!--Saved by Quest 5.5.5328.26617-->
<asl version="550">
<include ref="English.aslx" />
<include ref="Core.aslx" />
<game name="ConvTest">
<gameid>1dd40f19-363a-49bf-8f2d-4a187af8adeb</gameid>
<version>1.0</version>
<firstpublished>2014</firstpublished>
</game>
<object name="room">
<inherit name="editor_room" />
<object name="player">
<inherit name="editor_object" />
<inherit name="editor_player" />
</object>
<object name="Elf">
<inherit name="editor_object" />
<speak type="script">
request (Hide, "Command")
msg ("The elf looks at you with puzzlement. \"Are you a {command:I'm human:human} or are you a {command:I'm a dog:dog}?\"")
</speak>
</object>
</object>
<command>
<pattern>I'm human</pattern>
<script>
msg ("\"I'm no dog,\" you reply.")
msg("The elf snickers. \"We shall see.\"")
request (Show, "Command")
</script>
</command>
<command>
<pattern>I'm a dog</pattern>
<script>
msg ("\"Woof woof,\" you reply.")
request (Show, "Command")
</script>
</command>
</asl>
It has its problems, though e.g. the inline command links remain active after you select them. Perhaps you can clear the screen in between. Also, the command executed is shown, so you have to make it "pretty". And unless you disable the commands, the player can type in the command text given the opportunity.
In the conversation systems I've done, I've used menus. They're transient (they disappear when clicked) and they don't require commands for each choice. You also don't have to muck around with hiding and showing the command prompt.
Given that Quest is HTML-based, you can work some Javascript in and use ASLEvent to invoke scripts in your game. That's a more advanced topic, which we could get to if you feel adventurous. It still won't solve the problem of the links remaining on screen after you click one.