I just played this after finishing off Andrew Plotkin's Shade. In most IF, the basic navigational unit is the room. In Castle of the Red Prince and Shade it is the object. The movement system in both games have some similarities. In Castle, players move about a wide spatial area by examining objects. Standard movement functions don't work. This lets the player leap about the game space easily. You can find an object and immediately use it if you can remember the noun you need.
In Shade, the feel is far more claustrophobic, but it has a similar movement structure. Movement within the nooks of the apartment is also done by examining them. Items in the nooks can get examined directly upon discovery after they've been viewed once.
This type of navigation works well for very small IF games. Disambiguation errors would grow rapidly without careful crafting otherwise. Castle does it well, but I also feel that the story could have been stronger without sacrificing the navigation, as noted in other reviews.