The only time Skyrim npcs have more realistic interactions is when its a fully scripted conversation.
And this is precisely why I feel that Skyrim is an improvement over Oblivion. When I pass by two NPCs tending to crops I hear them talk about these specific crops, in this specific field. Family members have arguments about issues that are specific to those NPCs only. You hear their stories, they feel a lot like real people with real issues. After I have finished trading at Riverwood Traders I feel like I know Camilla and Lucan Valerius. After I have finished trading at Jensine's "Good As New" Merchandise I do not feel as though I know anything more about her than when I went into the shop.
Skyrim is full of arguments, disputes, agreements, between NPCs. You hear them talking to each other everywhere you go.
Talking to each other, not just talking. There could be more of it, true. But that can be said of Oblivion as well. And there is enough that I feel I am surrounded by NPCs who have real stories to tell, who have hopes and dreams, who have done things in the past or who dream of doing things in the future. This stories, these conversations, combine to make the world feel more real and alive to me. And it is all because this dialog is specific to the characters who speak it.
But it doesn't stop there. NPC's in Skyrim do not just interact with each other with more depth, they interact with my character with more depth also. I can drop a soul gem on the floor of a tavern and a bar fight will break out as patrons fight over it. Or one of them will pick my soul gem up off the floor and ask me if they can keep it. Or they might ask me if I want my soul gem back.
NPCs will comment on things that I have done in the game. I hear different passing comments at the beginning of the main quest than I hear after I have finished the main quest. I hear comments that reflect the fact that my character is a member of a faction. I hear comments regarding my character's skills.
I can play tag. I can play hide-and-seek. I can get into fist fights in taverns.
On the roads I find Thalmor Soldiers leading prisoners to be executed. I find Redguards questioning suspicious people. I find caravans of Khajiit merchants. I find Vigilants of Stendarr hunting down Daedra. I find Bards, Pilgrims, Hunters, criminals on the lam and other people hunting down those criminals. The world is alive with activity, with NPCs doing things, all around me.
It's fine if someone prefers generic dialog spoken insdisriminately by every NPC in the game. But I will take Skyrim's scripted encounters any day.