I agreed with the OP to a point.
I agree that a draw distance, what ever it is, should have everything drawn in it and that polygon "management" is important. BETHESDA!!!.... Stop wasting polygons on land and grass and buildings that are pretty much large flat areas. Since we're at it, stop doing what ever you are doing to textures that make everything a bunch of little squares because it looks like crap. ES:V doesn't need to be the next Crysis/Metro 2033, it doesn't need to use tessellation ridiculously.
IF ES:V does need to do something in the graphics department, that something would be to give the landscape aesthetic continuity. What I should see in a given situation should be seen, not fade in, not pop in. I wouldn't of cared if Oblivion's draw distance was a 1/2 or 1/3 of what it was.
...if I add in anything else, I'd say HL2's [2004] H2O reflection >>>>>>>>> Oblivion's [2006].
Funny I pretty much expect it to be looking like Crysis in Exteriors and Metro 2033 in interiors. Or even better.
I am pretty sure Bethesda designers know what is good graphics.
Thief 3:
http://image.com.com/gamespot/images/2004/reviews/528587_20040525_screen002.jpg
http://www.moboid.com/portfolio/thief/TDS_GAM_Screen_Map.jpg
Thief 2:
http://darkfate.ru/files/fan-missions/Thief2/Night_in_Rocksbourg/Rocksbourg_4/screenshots/dump002.jpg
http://darkfate.ru/files/fan-missions/Thief2/Night_in_Rocksbourg/Rocksbourg_4/screenshots/dump007.jpg
TES4:
http://www.elitistsnob.com/images/Oblivion%202006-05-21%2008-38-25-15.jpg
http://www.cheats.ru/uploaded/e/elderscrolls4oblivion/elderscrolls4oblivion0410.jpg
TES3:
http://i73.photobucket.com/albums/i201/Vality7/Screenshots4/SolE_02.jpg?1290304990#.jpg
http://img217.imageshack.us/img217/3811/birdvvardenfell.jpg
Crysis
http://www.techspot.com/articles-info/140/shots/crysis-4.jpg
Metro 2033
http://kokugamer.com/wp-content/uploads/2009/10/metro2033.jpg
I have no point, just want to add some screenshots.
PS. Off course Morrowind and Thief 2 are modded. But they are still technologically behind of others. Metro 2033 deserves all the praise. That's a bad Crysis shot, there are insane shots. Oblivion isn't bad at all, it is just too... bright. Thief 3 PC uses the textures for XBOX and this applies to Oblivion too. Thief 3 uses more dynamic lighting and it helps the gameplay mechanics. So Thief 3 is only guilty because of texture limitations of consoles and porting it to PC badly. If it wasn't for Metro and Crysis one could say game graphics are getting worse and worse. BTW, bump mapping is only used good in Metro 2033. Others just look [censored] with it except partly Crysis(which avoids its overuse) and Oblivion to some degree.
Here are some shots, I did polish with shader fx for Oblivion. No texture packs only shader post processing.
http://tesnexus.com/downloads/images/30054-2-1289262292.jpg
http://tesnexus.com/downloads/images/30054-3-1289262292.jpg
http://tesnexus.com/downloads/images/30054-1-1289262291.jpg
http://tesnexus.com/downloads/images/30054-4-1289262292.jpg
PPS. Oblivion and Morrowind modded shots are created within DX 9.