Cause an orc warrior is really going to stay in the shadows and hide like a puss.
If the opponents the orc is facing are tame enough in comparison to the PC to be cut down, then no, it's not going to crouch in the shadows.
But if the orc is going up against multiple enemies that are supposed to be a challenge one on one, then yeah, if that orc warrior wants to not put itself in a stupid situation, it'll play coy and crouch in the shadows for a bit.
OK, first let me say few stuff to these people who say that it's more realistic as it's been up to now.
Yes, it is, but it's pain and way less fun.
Way less fun is entirely subjective. I find being able to charge into a room with several at-level enemies and slaughter them all to be boring, rather than tactically considering the situation to handle them one at a time. Or redesigning a character to handle with massive damage, such as a healer-warrior combo.
Also, current TES ''realistic'' fight is fail because you can't do lot of stuff and moves you would do in actual real life fight.
It's not realism that's at stake, it's the interplay of believability, entertainment, and handling how the theme of combat feels. The player-to-enemies ratio of Assassins Creed, for instance, gives off an entirely different feel than what Morrowind or Oblivion's largely single-combatant combat does.
Not to mention that I find it simply silly that 5 bandits with daggers beat the crap out of me while I wield a huge axe and can't swing it around to bash them all at once.
The individual relations of the mechanics might need tweaking, but the system itself is believable:
Perhaps they were more skilled with their daggers than you were with your armor.
Perhaps your skill with that huge axe simply isn't up to par with their dodging ability.
How can you be an all powerful dragonborn if you can't take few bandits at once without big problem? >.>
Easily, because Dragonborn does not connotate all-powerful by necessity. Tiber Septim was Dragonborn, but he still had to trick the Bretons and win the aid of the Nords at the battle of Sancre Tor. Uriel Septim was a Dragonborn, yet he still got cut down by assassins in the sewers. You get the idea. Dragonborn is a nature, not an immediate skillset.
What I like in Fable series (one of the rare things they did better) way more than I like in TES is that you can take on lots of enemies at once witch is FUN and still doesn't break any of the immersion or anything.
See fun-comment above.
Further, in ES, the only time when multiple-combatant fights get out of hand are times when the player overjudges their combat effectiveness against whichever scenario they throw themselves against. If I'm level 15 or 20 in Morrowind and I decide to go against a group of people, chances are they're low enough of a level for me to handle them at once just fine. If they're not, then that's my problem for misjudging.
It gave me feel of an actual power and made me enjoy fights.
The difference is in automatically having that power through having little to no issues in average multi-combatant fights, versus earning the skills necessary to maybe take some enemy clusters, yet not all enemy clusters.