People keep saying there was nothing to levitate to in Oblivion, but that isn't true.
If you had levitation in Oblivion you could levitate to the top of an Oblivion tower and grab that sigil stone so fast it would be a joke,
Can you levitate in Mournhold?
and you could levitate behind the city walls into an empty world space.
Strangely thats was not problem to do the same in Morrowind, making cities separated by cells from other world was part of overoptimization for consoles since no one know they actual power at the beginning of next gen but also problem was in not optimized Oblivion engine what was pumped up with middleware and support of new graphical features without additional testing, game was not baked well since Dev's isn't has much time for testing and quality control they are hurry to Next Gen release, thats why Oblivion has many good features what is not applied well to game, thats why many features was removed instead to be fixed because deleting something much easy and faster then fixing or improve something, but play vanilla and play SI and feel difference, feel how game must become at end, thats all my IMO but does it not looks like truth?
The biggest deciding factor as to whether or not there will be levitation in Skyrim is whether or not the cities are in separate world spaces. If they are in the actual game world, then there might be a chance for them. Honestly, my bet is levitation is not in even on the simple idea that they want the player to walk the steps to High Hrothgar, a process that will not be "epic" if you can just levitate to the top (as funny as it would be).
If Levitation will be redone to be better there will no such issue, there at this forums already mentioned many ideas how to improve Levitation, stop think about the same levitation thats was in previous games. think about new one, better one.
Besides dev's say thats Winds are powerful at mountains I believe thats will hard to control levitation in such places, so mage will walk or will levitate on small altitude, I believe using "magical fast travel" destroy immersion more then using of levitation.
Personally I would rather see climbing in.
I also like to see climbing but not as replace for levitation they are both can work together, one will work as option for mages another one as option for rogues and warriors, they are not equal both has different work, and both improve gameplay if can be done by player and NPC.