I think I saw this played as a group at Fig Boston. The audience would shout out commands and someone at the front would type them it. They had people voicing the characters. Its worked out much better than expected, people were laughing.

Its amazing how much better these games (now known as interactive fiction) have gotten since Zork or Planetfall. Its much better at understanding what you type.

And google shows that the lost pig was the game played live: http://bostonfig.com/interactive-fiction/