In case you work at Bethesda and haven't heard about Nehrim before, here'a a link to the site http://www.moddb.com/mods/nehrim-at-fates-edge. It is a good example of how you make a game. The environments are all handmade, with nothing randomized, giving us a more interesting and varied world to explore. I know there is much more to it, like clever quests and a less cliché storyline but I haven't tried it so I can't comment on that.

Link is broken.

You yourself claim you haven't tried it, so how can you attest to any of these things, like the enviroment?

Fixed link for you:

http://www.moddb.com/mods/nehrim-at-fates-edge

http://www.nehrim.de

Nehrim wouldn't exist if not for Oblivion, so I think it's slightly unreasonable to say "this is how you make an RPG". Yeah, I think they know how, considering Nehrim is a mod for the one they made.

My question exactly. How can you possible know that if you haven't even tried the game.

official website, videos, and write-ups of the game can give that information.

I agree with the storyline cliché.
Every single RPG is about saving the word about something, whether you find that sooner or later it's always the same, save from a few games. Even New Vegas, that was about faction wars, gave you the choice of getting rid of Caesar's Legion and saving the NCR and wastelanders from slavery and death.

But when the RPG is about saving the world or something like that, usually your acts are important and have bigger consequences which helps to increase C&C fun and complexity. If an RPG explored a storyline where you play a role in something small, the choices and consequences wouldn't affect the whole world, but a few single places.

So yeah, sometimes it's necessary to implement that kind of storyline for the sake of roleplaying. Now what developers should really do is put more effort into making it well written and full of great moments and lots of choices, which FNV did well (though it didn't have lots of memorable moments, it was wel written and mature).

Bioware:
1- You are a common person
2- Some big twist happens in your life, you are important now (Shepard becoming Spectre, the hero in DA:O becoming Grey Warden)
3- There is a big evil threating the universe (Darkspawn, Reapers)
4- You recruit a bunch of companions each one with their quests
5- You go on a last suicide mission to destroy the evil forces

Now that's a really dumb type of storyline.

There seems little point in discussing it here. It is a mod made for Oblivion and Bethesda already know about it as it is mentioned on the http://bethblog.com/index.php/category/oblivion/

If you want to discuss this mod then the appropriate forum would be Oblivion Mods where there are already several topic about it.