In some of the later Loebner competitions, when text was transmitted to the human character by character, the bot would even simulate typos followed by backspacing on screen to make it look more realistic.
Participants spent more time polishing up the natural language parsing aspects in conjunction with pre‑programming elaborate backstories for their chatbot's bios among other psychological tricks. In the end, the whole competition was more impressive as a social engineering exercise, since the real goal kinda became: how can I trick people into thinking my chatbot is a human?
But reading through some of the previous competition chatbot transcripts still makes for fascinating reading.
Isn't that really what all these AI companies are doing too? It sure seems like it is.