Yes, SCI scripts are much like EXEs, and just like you can't just convert an EXE back to C, you can't simply convert an SCI script to full source code.
SCI scripts are stored in an assembly language (byte code), which is completely different from the syntax you write SCI scripts in.
The task of writing a decompiler is possible, but it would be a HUGE amount of work, and I'd rather spend my time creating the whole SCI Studio VGA than a simple decomipler.
All the scripts are linked together, which is why the disassembler dumps all scripts at once. In order to properly disassemble one script, it needs to scan all the others. So, if you were going through a game like AGI Studio and clicked on a script without a source, it would need to go through up to 1000 scripts then disassemble and do complex decompiling before it would show up.
Finally, It would be FAR more complex than just v0 and o5. There would be things like (procedure 321_32230()) and (var temp0,temp1,temp2) and (local local_0012,local_2333), etc. Unless you knew a fair amount of the insides of SCI, you'd be boggled anyways.