CicadaGrrl
Troubadour
I have been criticised by other people for using dialogue to reveal my world to my readers. The characters talk about things that would be common knowledge to them, but foreign to the reader. I don't see their criticism, how often do we talk about mundane things that would reveal our world to an outside reader? Quite often for me.
People also talk while doing things, dialog beats I think they are called. Everything should be either exposition or moving forward dialog can move forward or expose.
Unless you do it really awkwardly--having them talk about stuff they wouldn't mention--I think this is a GREAT, dynamic way to set up your world.