Only problem in this is that the system encourages to obsessive saving. You can just run through the game without really thinking about choices you make. After all, if you make a mistake, you can quickly reload last save.
I thought that this is the most efficient way to handle saving the game until I played Amnesia: Dark Descent recently. The game saves automatically so you don't have to worry about saving all the time. In fact, you can't even save the game from pause menu. This really immersed me in to this game and I think it would be the best choice to have this kind of saving method in Elder Scrolls V: Skyrim. In role playing game, we should be building the character with our choices. No one can make perfect choices the first time they play a game. This saving mechanic would also highly increase replaying value.
What do you think is the best way to handle saving game progress? Discuss.