And yet they were so concerned they they put aside mutual suspicion, antagonism, and vested interests to embrace unity and altruism, supporting a monk who came out of nowhere. You've come full circle now, so which is it- business as usual or frightened into reason?
Not frightened enough to break down into mass panic, but frightened into working together.
And Oblivion is being judged as a failure relative to a success. I don't care how they do it (and certainly don't want Morrowind's environment set somewhere else), as long as it is effective and compelling. Cyrodiil was absent. It wasn't worse than Morrowind in terms of atmosphere and background so much as it didn't bother to present one.
A success in what exactly? I doubt that it could be bigger than selling a lot of copies or getting good reviews, both of which TES IV succeeded in doing.
And we obviously view Cyrodiil differently from each other.
And really, you can't compare a few fabricants and some bad weather to an invading horde of monstrous immortal creatures from portals all over Cyrodiil, who almost effortlessly waste a fortified city in the heart of the Empire. This isn't any normal enemy, these are the forces of Destruction.
Sure I can, even at the heart of the event there was no panic. As opposed to having not seen any of it, only hearing about it, even if the event was a lot bigger.