I have Oblivion GotY through Steam. Whenever I start the launcher it checks my hardware settings and automatically sets everything to very low. My PC is more than capable at running the game at settings higher than this. I've gotten past this by copy/paste in an Oblivion.ini to the My Games/Oblivion folder, but the annoyance this causes has finally broken me. It does this every single time I start the game and I don't want to be forced to use something like OBMM in order to launch. I also can't just navigate to the Oblivion.exe file in my steamapps/common/oblivion folder because that brings up the launcher as well and causes it to check my hardware, thus continuing the issue.

My system specs are:
Radeon HD 5750
8GB RAM
AMD Phenom II x6 ~ 3.0 Ghz
MSI 890FXA-GD70

If you launch the game thru steam, does it actually create Oblivion.ini, and Renderer.txt in the My Games\Oblivion folder?