I like the story in a story a lot. And came up with an idea for a variant: Canterbury Tales with the game engine from 1001 Nights.
A group of pilgrims travelling towards the same shrine to seek redemption for someone or something, telling stories to pass time and present their view on right and wrong. Dice could represent overcoming physical hardship on the journey (being robbed, loosing a horse, being held up by bad weather) and achieving spiritual purity appropriate for redemption (through fasting, prayer, and good deeds).
Could this work?
I don't see why not - play it and let me know if how it works!