what happens if i drop the soap?
You're screwed... literally.
this reminds me, were there any bathrooms in oblivion?
Nope.
even though, they could include those things as part of houses and such.
I mean, they have sewer systems, but no baths or toilets?
Nope. Food is made into energy and health and magicka. No waste.
At least, that's my theory which I am basing on basically nothing.
Yeah, but where are they going to take baths?
I doubt in lakes because they like having privacy also.
Still, even if they don't care about privacy, during winters taking baths in lakes and rivers is not the best idea.
Of course, if they are frozen, then you won't be able to take them at all.
Still, I think that they should have toilets and baths.
On topic:
Nah, current punishment is enough.
Permanent loss of some of your skills can be pretty annoying and was enough to keep me away from the prison.