Two hours is a lot for Nintendo, but Nintendo has never made anything like this before. If you compare it to the HD narrative games, two hours is nothing. MGS4 is estimated to have 9 hours of cut scenes and FFXIII supposedly has 10.
Go ahead and suggest stakes.
And yeah, only cut scenes (and when the game forces you to go through dialog, though I don't think that will happen as this is being voiced) that progress a narrative count. If it's just a boss intro, or a pan over a new area, that doesn't count (though I'm not a fan of those either).
A game I'm developing with some friends:
www.xnagg.com/zombieasteroids/publish.htm
It is largely a technical exercise but feedback is appreciated.