Loom is a great game. Unfortunately just not this version.
The version that Steam uses is a direct Windows port of the "talkie" CD released in 1992, which adds voice acting and VGA graphics, but at a cost. They removed a significant portion of the dialogue to fit the (uncompressed) voice acting on the disc, reducing the story and detail. Furthermore they censored many, many scenes. http://www.movie-censorship.com/report.php?ID=802320
has a pretty thorough list of censored and missing content. There isn't even almost any background music due to the dialogue taking all the space. As a result of all these, many scenes become rushed and lack the pacing or emotion they're supposed to have.
The voice acting isn't very good either, it's average at best in my opinion. The technical implementation is also somewhat bad due to being one of the first voice-acted games ever, as many lines are cut off abruptly at the end.
If you want to experience Loom, I recommend you to find the original EGA version or the FM-Towns version, neither of which are for sale sadly. The FM-Towns version has VGA graphics if you can't stand EGA, but the original looks really good in my opinion and has the best EGA graphics that I've ever seen. The best sound option in the EGA version is AdLib/SoundBlaster by default, but there is a patch
available that adds a MT-32 option (note however that you either need a real MT-32 or know how to emulate one).