PLEASE POST THINGS YOU THINK WOULD MAKE OBLIVION BETTER AS WELL! THIS IS JUST MY LIST. I WANTED YOU TO POST YOUR IDEAS AS WELL.
1: For wounds to appear on enemies. Now I realize this is most likely VERY hard to do, but there is nothing more bitter than slashing an enemy and seeing no real results for your effort besides a grunt and seeing their health bar go down. What I would want is that wounds (or scratches/dents on armor) would appear on enemies where you slashed them and at the proper angles, Don't forget this is a M rated game, a little blood would be well accepted.
2: For arrows to 'glow' with their enchantment when shot. An magical arrow arrow doesn't really feel to special when the effect only usually lasts for 1 second on strike, a good aesthectic effect would be for the arrow to be outlined in a bright glow of the proper color depending on their enchantment (EX: firing a frost arrow and having it shine a fierce glowing blue as it travels through the air)
3: Spells that are more interesting. Now the elder scrolls formula has been great since it started but I am getting bored with seeing the same animation over and over. Now I love using spells in oblivion/morrowind, but using the same thing over and over gets rather boring and I would like new types of spells for the elements with new effects or animation rather than the standard fire/ice/everything else (besides shock) ball flying through the air. EX: spell that can freeze ground, and actually turn people into popsicles for ice (like the cryo weapons in fallout), having shock have a real effect such as making the enemy be stunned and crackling with energy when hit, being able to use fire in more environment damaging ways (of course the scenery should be able to respawn later) etc etc etc.
4: Making bow attacks not look stupid as hell when moving, I guess its not that bad in first person but still really.
5: Combos. A good example of this would be that if you do two slashes and then do a forward power attack you would do a knock-back kick after the slashes. This would be a great way to make things like the fighters guild more fun by offering more scripted combo moves as a reward for ranking up. Also while I am on the fighting topic, Can we make knock-back hits for the shield less random? It is annoying either waiting for it to happen or to completley ignore it exists, time your opponents swing right and have the next move planned only to find you did a knock-back shield smash instead.
6: Duel weild weapons, isn't something i see as a big deal but it would be a great concept (not like the mods where it is just a re-skinned shield, but a real weapon, such as how the right trigger allows for a right slash make the left trigger count for a left slash and holding both down would block, and off course make it so u cant just spam them like crazy)
7: Weapons properly showing enchantment. Similar to arrow situation. as we already know, melee weapons do glow the correct color of their enchantment, but instead of seeing your sword glow a dim red wouldn't you much rather see it wrapped in fire (shiskebab)? Lightning (jingweis shock-sword)?
Off the top of my head those are just a few of the things I have found would make playing an elderscroll game a more realistic role-playing experience I could probably think of more and give more accurate descriptions of my other things if it was currently 5:30 AM my time and I wasn't tired as hell.
NOW PLEASE POST THINGS YOU THINK WOULD MAKE OBLIVION BETTER