NPC Life was definitely made for a contest but I can't tell you which one. I hope it was the cussing contest, that'd explain a whole lot. The "plot" is that you're an NPC and you're fed-up of standing at the same spot, waiting for the hero to approach so you can say the same thing to him as many times as he wants to hear it. You wander around town cussing at your fellow NPCs, get fall-down drunk on Black Betty (This is the only part I laughed at, great use of rotation) and eventually leave.
There's been a lot of jokes in nerd-dom about NPCs, silent protagonists and whatnot and NPC Life doesn't add a damn thing to the conversation. Not to sound like a prude, but every other line is the F-Bomb. I'm all for F-bombs, the F-bomb can be really funny but it's because it's a shocking word. When it pops up every textbox, it loses the shock value and thus loses the chance to be funny.
I guess if you're just now learning the F-word and it still has a lot of novelty value to you, you'd probably get a load of laughs out of this game. If I were like, 10 years old and wanted my friends to think I was a big shot, I would definitely put this game on a floppy disc and take it to school. Outside of that, I wouldn't touch it. If it's some kind of a joke, I don't get it.