I don't remember this, but it might be true, since I honestly can't remember, I will have to check that out, I seem to remember though, that you can ask about the location you're supposed to go to, and they will tell something about, particularly it's location (provided that it isn't one of the main cities), but then I can't remember if this is consistent with every quest.
In some cases, you can ask about the location in dialogue. For example, the Skingrad Recommendation Quest allows you to ask about Bleak Flats Cave, and you are actually told it's northwest of Skingrad. However, in the case of this particular quest, the journal doesn't record "northest;" it records "west." And not to mention, northwest is nowhere near specific enough as a direction. There are lots of things northwest of Skingrad. The tips of the Surille Vineyards are NW of Skingrad. The Imperial Reserve is NW of Skingrad. Hammerfell is NW of Skingrad. And while, yes, you will eventually find it... pointing in a given direction (one that can easily encompass around 45 degrees of uncertainty), not specifying any distance, and being told, "It's somewhere that way" is even worse than the worst of Morrowind's directions.
Of course, it makes up for it by plotting on your map and providing a quest-arrow. And I can think of no more quests that provide even the pseudo-directions that this one does.
It makes sense since in order to be accepted as a full fledge member of the mages guild, and not just be an associate. I find that it is not as much a question of you being far-flung across the map from every new quest, because it's the same quest. The actual recommendations are just kind of subquests, you aren't told with every new quest what to do next, you're just told that you got the recommendation, because you already know that you need to get to all the mages guild leaders from the overall quest to get into the university.
It makes sense only if you assume that the in-game guild policy of recommendations is infallable and is not under the influence of the Oblivion fast-travel design decisions. Daggerfall allowed you to work for extended (if not indefinite) periods of time from the same city. Morrowind allowed you to work for significant amounts of time in the same city. Traven's newfound recommendation policy is the newcomer, and there's really only one question to be had here:
Does the situation prompt the mechanics, or do the mechanics prompt the situation? Was the decision to create this style of recommendation policy set in stone before the consideration of free de-limited fast travel, or did the decision to use free de-limited fast travel lead to the consideration of the recommendation policy? I am severely inclined to believe the latter, that the decision to incorporate such a recommendation policy was affected by the FT mechanics. Why? Because core mechanics such as FT are the first things to be ironed out in concept for the game. Things like quest design and what-not come much later. The use of free de-limited fast travel paved the way for such a complimentary recommendation system to be used. Therefore, leaning on the recommendation system as an explanation sadly does nothing.
And the "it's the same quest" argument doesn't hold up. Let alone the technical distinction that each recommendation is actually its own quest with its own unique quest ID. You may be working towards one larger goal, but saying the recommendation quests are the same quest overall is like saying that stopping Dagoth Ur was one quest overall.
I also find that the fighters guild thing is really just about where the trouble is, and what rank they need you to be in order to do a particular job.
Same thing as above, like the MG recommendation policy. Do the spred-out FG quests prompt the mechanics, or do the mechanics prompt the spread-out FG quests?
2-3 quest at a single guild hall is not what I would call quite a while, this also really is a matter of how much time it takes you to do the particular quest, and although you take the quests from one guild leader, you're still being sent all over the place since the quests objective usually lies somewhere else entirely.
2 to 3 quests? Pardon me whilst I don my monocole and reach for ye olde Morrowind Prophecies:
Ahem.
Ald'ruhn Mages Guild: 9 quests.
Balmora Mages Guild (Ajira): 7 quests.
Balmora Mages Guild (Ranis): 6 quests.
Wolverine Hall Mages Guild: 6 quests.
Vivec Mages Guild: 4 quests.
Total: 32 quests.
Compared to the 1 quest per city in Oblivion and the 13 quests in the Arcane University.
Do quests in Oblivion have more depth? It's incredibly debatable. Unless Bethesda wants to go the way of a Bioware RPG (and even then), the Oblivion quests are pretty much the same Morrowind Fed-ex quests with some pretentious dressing.
And I must regretfully tell you that you are incorrect regarding getting sent all over the place anyway due to quest objectives being all over the place. For the Mages Guild in Morrowind, the earliest quests you can receive from quest givers either (1) stay local, or (2) send you to a city to where you can pay to travel (an option that Oblivion undercut by using free de-limited fast travel).
To take Balmora's quests as an example:
1st quest: Mushroom picking. Done in the bitter coast region, a small little jaunt from Balmora.
2nd quest: Sabotage. Done without even leaving the guildhall.
3rd quest: Flower picking: Done by the shores of Lake Amaya, a bit further than the Bitter Coast yet still close to Balmora.
4rd quest: Stolen report. Also done without even leaving the guildhall.
5th/6th quest: Join us and Pay Dues: Done in the westward Molag Amur regions. Farther than the Bitter Coast and Lake Amaya, but still not sending you out to the Sheogorad region.
As you can see, the quests have a distance progression that contributes to their ease. So while it's true that you may be crossing 3/4 of the map when you start tackling the more serious quests, when you first start out, you are kept close for your safety and for your ease of completion. And while you can either pay to travel or walk to another quest-giving city to get quests there if you so choose, it is by no means required of you. This is what Oblivion so utterly lacks.
Sure the player jumps, but the character doesn't. I don't agree that this somehow turns of distance, because there are still places that you can't "jump" to, and you only have to not use fast travel to feel the distance of the world.
It turns off distance, because you the player can shut off distance at your whims. The fact that, in-world, the character doesn't shut off distance is irrelevant. To use an example, you the player do not use the restroom for your character. We can assume that the denizens of Nirn, however, are not without bodily waste functions. That said, you the player have no experience whatsoever of your character's activities. Why? 1) There are no mechanics in place for it. 2) There are no (and have never been) devices synonymous with it (such as bathrooms). While there are sewers, it's unclear what purpose they serve, because there are no contributing sources from houses.
So while we can most certainly infer that the characters do in fact spend long hours walking from place to place, it doesn't change the fact that distance is being shut off. Just as inferring that bathrooms surely exist in the ES universe doesn't change the fact that you can't explore one in the game.
As for the "you have to walk there once" argument, that is no excuse. If you have fulfilled the condition of walking there once, then beyond that point, you thereafter have the ability to turn distance off at a whim regarding that location, and for every other location you wish to travel from or to. And the "from" part is an especially important point that I would like to elaborate on. Most people hold up the "to" qualifications (you have to walk there first) to point out limitations, without ever considering the "from." It remains that, with just one map-marker on my screen (nevermind that the game gives me several for each city from the word "go"), I can fast travel FROM anywhere at all on my exterior map. Completely unlimited ability to turn distance off.