I remember a certain mod that added more realistic beast behavior (I think it was Oscuro's Oblivion Overhaul, but I'm not positive). Basically it made it so beasts would ignore you, run away, or attack depending on your proximity to them and how fast you approached them.

I concur. :ahhh: :bonk:

Just here to echo all the "less aggressive wildlife" comments. Exploring the wilderness gets really lame when you have to worry about something attacking you every 5 seconds.

I didn't mean that the random NPC's would not have houses or anything (far from it, as that would be silly).

It could easily be done like the Witcher where random NPC's spawn from the world by coming outside of doors that the player can't enter, which lead into buildings which one would assume would be homes, work places, etc.

If we want any interior to be enterable then it would be more challenging, but shouldn't be too much harder than what Bethesda does with the Guard scripts (go to guard houses in big boarding rooms for sleeping, eating, etc) except instead of guards and guard houses have them be tennants and random citizens.