Have you tried scaling the UI with CTRL-Home?
Just noticed the UI scaling drop box in the configuration screen as well... has this not remedied it at all?
Edit:
bleh.. apparently when you apply it to all UI elements, it doesn't apply it to the NPC dialogues. Of course... that would be too easy. There is something else you could try though... may not like it too much. You can read the NPC dialogue from the Event log tab in your chat window, or you can add all NPC dialogue to any of your other chat windows. By default, the option to show normal dialogue is disabled I think in the main one, but it is enabled for the Event window.
Go into Character Config, Log Window Settings (last one with the chat bubbles), then move down to click on the gray button under Log Filters for which chat window you want to add all NPC dialogue to expand the options. Move over to the Announcements tab. There will be two options for NPC Dialogue--one is for just their announcements (like when in a hest), the other is for their normal dialogues like when you click on them in town and such. Enabling that one will put all their dialogue in that chat window as well.
Not a perfect fix by any means, but may be a work-around for the time being since you can control the text size and such for the chat logs.