One thing I loved about Morrowind is that even the bandits in non-quest locations like caves and tombs still had names. It was fantastic. It was as though every single NPC in the game was someone. I didn't like fighting "Bandit" for the thousandth time in Oblivion. I'm also not a fan of seeing "Civilian" for the thousandth time while playing Skyrim. I agree, it does break immersion. It makes it so I don't even acknowledge those characters as existing since they don't matter at all whatsoever, whereas seeing named NPCs everywhere makes me think they might be part of a quest later or be involved in something in some way. It makes the cities and the world feel alive. Unnamed NPCs just make it feel...like a video game.
Absolutely; spot on! You totally nailed it; one of my favourite things in Morrowind was also the fact that everyone was named. It really does add gravity to the situation if you're killing
someone and not
something. Morrowind bandits were people too; by having names, it made me think about them, and why they were bandits, whether they had any family, whether they had a hard life that just led to crime, etc. It just made them real, made them
human (for lack of a better term, since this also applies to the Mer and Beast races
)
On the other hand, bandits in Oblivion were completely dehumanised by having generic labels. I would never feel bad about slaughtering entire troupes of bandits, even if some looked young enough to be minors. They didn't have names, and psychologically I didn't see them as people anymore. A bandit meant the same to me as a wolf or a bear - just another brutal animal to be put down. And when you realise you're thinking of people that way, well it's slightly upsetting.
A good anology would be prisoners in the real world who are assigned numbers; if prisoners don't learn prisoners names and refer to them by generic numbered labels, the prisoners become dehumanised; they lose their status as people and just become prisoners. Nelson Mandela wasn't Nelson in prison; he was 46664 - just another worthless piece of prisoner scum to his guards.