The physics should be certainly taken under some kind of control - I constantly bump in to objects and send things fluting in Oblivion, after my visit half on Imperial city looks like a twister visited the interiors
And not only no one picks up the stuff I send fluting, but with the theft system, even I can't re order it to the way it was.
And as for home decoration - things like book placement scripts should be in game without any mods, as well as the means to easily place other objects just the way we want them. And we should have working armor and waepon stands, not just for our home but for all buildings - shops, other warriors houses and so on.