also note, Oblivion was released early 2006, Mass Effect, late 2007.
That at least an 18 month gap.....Oblivion was doing pretty damn good for its time. It just they forgot to 'update' it with the fallout 3 engine.
On the other hand, Half Life 2 was released before Oblivion, and yet the characters moved much more naturally in dialog.
Of course, that was an FPS and lacked interactive dialog, but I'm really not sure how much difference that would make.
I also don't have a problem with future TES games taking a page from Fallout 3 and having 'filler' NPCs that don't say much of anything which would probably make it easier to do this.
I actually wouldn't mind if this was done, I don't need every random NPC on the street to be able to talk to me about everything from rumors to local history and politics like in Morrowind, for one thing, it's a waste of effort on dialog I don't really care about, Morrowind had lots of dialog, yes, but most of it was incredably boring and served only to explain the setting, and while that is important, the same information could be, and in fact, is, presented in much more detail in books, I would much prefer if Bethesda put a little more effort into making the conversations with important NPCs a little more interesting, because even if any random person on the road has hours worth of dialog, if it's all boring, I'm just going to ignore it. Rather tham worrying about the quantity of the dialog, Bethesda must first improve the quality. It also makes no sense, people don't go stopping every stranger on the road to ask about their background, recent rumors, local lore, and the Nerevarine. I would not complain if Bethesda did things the way they did in Fallout 3, and for that matter, what the vast majority of RPGs do, for future Elder Scrolls games, this would perhaps allow towns to be a little more populated since Bethesda doesn't need to worry about details like names and backgrounds for each NPC, plus, it would allow the important NPCs to be more developed and have more interesting dialog since Bethesda has more time to focus on them.
Oblivion is delving in there, imo. I think we should stay at the edge of the valley, until technology allows us to get past it. Who says Bethesda should be the one to get us there?
While Oblivion's faces had their problems, this comes from being too unrealistic rather than any sort of "uncanny valley" effect, as is shown by the fact that there are lots of games with much better looking faces in existence, in fact, even Fallout 3 has better looking faces, yet the problem does not become worse in these games, in fact, for the most part, I haven't observed it in other games. I don't think modern video games are in much danger of falling into the uncanny valley right now, they just have to worry about having bad character models.
But yes, the problem here seems to be primarily the character animations, or rather, lack there of. To fix it, the main thing that would be required would be to add more natural animations during dialog, which I think would not be unfeasible for future Elder Scrolls games, after all, Fallout 3 already added some animations to dialog that weren't in Oblivion, and considering that observing the changes from Morrowind, to Oblivion, to Fallout 3, we might note that while Bethesda's animations have continued to fall behind other games, they HAVE been improving, and considering that, we might assume that they will continue improving, so I think we can hope for more natural looking conversations in future Elder Scrolls games. I think what we really need to worry about here is the quality of the actual dialog rather than the animations, even if the character's move naturally during conversations, it would be much good if they still talk like robots.