Merchants:
With the inclusion of side crafting skills, there needs to be more merchants. Instead of picking up all your goods at a general items store like Alchemy-mart for ingredients or Blades R Us for weapons, I think we can go a little more detailed. Like a Butcher Shop for your various meats for cooking. Or actually buying regular vegetables like lettuce from a Farmer. There should be hunters that sell skins and miners that sell ore for smithing. Another good addition here is merchants that aren't always around. What's to stop a person who runs an inn/shop on their boat from going to other ports? It makes sense for there to be a few small villages on coasts, in addition to big cities. Why wouldn't a sailing merchant try those spots out?
In addition to that, there should be random merchants on roads. I'll get into that more later but simple respawning leveled (don't kill me please) merchants that wander between towns and settlements. Their paths would be random but they always stick to roads so you never know where you might see one. Good Radiant AI quests too. Save the merchant from being robbed or help rob him type of thing.
Crime and Punishment:
First off, every city should have it's own jail, like Oblivion. But there should be different policies on how guards react. No guard would kill you for punching a man in the face (unless the guard was said man). They would try and arrest you and if you pull out your claymore than they fight to kill. But if you keep just your fists or a small club or knife they would try and subdue you and haul you to jail. No sense killing us over something so trivial, escalation of force and all that. Also, some places should have more severe punishments than others. In the civilized capitol you just do your time but in some seedy town you pay with your blood.
No psychic guards, but that is covered in the Stealth section. Bounties should only affect certain areas and guards of that area. No reason Bruma should know I stole a plate in Cheydinhal. Of course after you decide to ritualistically slaughter anyone with children living across the street from them (for Akatosh knows whatever reason you sadistic ****s ) then the word should spread and bounty should not decrease, which leads me to my next point.
How does word travel? Logically they call up the mage guild and have them send word out. However, they would probably not rely on an independent guild so they would use a courier. Want to keep your actions contained to Area X? Well they will send a runner to warn other cities. Just silence him and the message dies. It would be a few days before the city noticed no one was responding and try again. So if you were good, you could literally kill everyone in a city over the course of a few weeks and other cities may never know.
There should be individual city bounties and a province bounty. The province bounty only goes up if word spreads or you are doing crime in multiple cities. If the province bounty goes up, all city bounties are set there until you go to jail. And when I say jail I mean JAIL. Nothing else. no bribes or fines. If you got province wide bounty it should be a kill or capture thing. You can't buy your way out of trouble.
Where did the fines go when you paid them? I did a mod (never released it, it was going to be a huge set of tweaks) that put the money in a locked coffer in the jail. You could break in and steal it back, on the risk that they suspected you and would try and arrest you (like a 5% chance of that happening, you would get a 500 gold fine in addition to the stolen money). On the equivalent of Saturday, a courier would bring the fines from other cities to the IC palace. From there you had until Monday morning to steal it back, or it was reused for federal cash and gone forever.
Stealth:
saebel has it summed up here: http://www.gamesas.com/index.php?/topic/1167460-revising-detection-and-sneaking/page__p__17191806__hl__stealth__fromsearch__1#entry17191806 The summation is REALISTIC DETECTION.
Also, on the topic of psychic guards, that needs to be fixed. I could get a bounty for attacking someone in the middle of nowhere or get a bounty because I stole a horse and the HORSE saw me do it and reported it, and then the guards would follow you anywhere, forever. This occasionally resulted in a bug where they weren't fighting you or pursuing you to arrest you, just following you. They would still try to arrest you when they caught up, but you could fast travel and go faster than them. So you could see them in caves or oblivion gates, I even got one in Mankar Camoran's Realm once, but that might have been a more severe glitch.
On the topic of Stealth and Merchants. I should be able to sell non-unique stolen goods to a merchant, as long as they weren't the owner. There should also be fences outside the thieves guild for getting rid of hot loot, so you don't HAVE to join a guild. Also, I should be able to store stolen crap in my house or hideout for a few weeks and they would lose their stolen flag. Something like 2 + (BaseItemValue/10) days. so for anything worth 10 gold or less, it takes 3 days, for a 100 gold item it takes 13 days, for a 1000 gold item you better hold onto it for a while (namely 103 days or approx. 3.4 months) or find a fence.
Extra Stuff:
"Large Scale Battles" - Got this from http://www.gamesas.com/index.php?/topic/1167749-wars-and-battles/. The major fights in past games were reasonably lame because of the lack of LOD low poly models. If we got some low poly models we could make huge fights look real and really cool. Well if you combine that and good scripting. You are storming a keep that Alduin has control of. You are way on the other side of a field and charging forward. In the distance you see people fighting, but they are all low poly models that take 1/10th or so the processing power of a normal enemy. As you get closer, a scripted attack by Alduin blows a group getting close to nothing but ash. That way it builds the tension, and clears the way for you. Large story fights should be like this as you only do them once per playthrough. It should be memorable for epicness, not for lameness.
A side note on this, even a fire sprite for super far away enemies would work. A fire sprite is like the fire in Oblivion. It was a 2d animation that always faces the player, giving the illusion of 3d. For really small people in the way off distance, you wouldn't be able to tell anyways. Especially since if you fled the battle area to rescue those far away companions it would probably just kill you saying Alduin swooped down upon you or without your help the charge failed. Same with if Martin died in Oblivion.
Roads to Other Provinces - Why is Cyrodiil in the center of the continent, yet feels so disconnected? No roads to other places, that's why. No trade routes, paths, or even some kind of crazy laser border guard like on Halo 3 maps. There should be paths that head down to other places, but you just can use them. This is continued in my next idea.
NPCs Walking on Roads - No one leaves the safe city walls in Oblivion. At least it seems that way. There should be random NPCs that only offer rumors or whatnot on the roads. they would usually have little loot, with rare exceptions. This could lead to more Radiant AI quests like the one mentioned above with a bandit attack on merchants. What's more, have them "go" to other provinces. Just have them walk down the path, out of sight, and then move to a different entrance and walk a different route. Simulated realism.
Better Local Maps - I have seen quite a lot of distress that the local map in The Elder Scrolls IV: Oblivion is the greatest game in the history of the universe.. And rightfully so, as it kind of does. The detection radius was WAY to big, it could even go through walls. Some kind of LoS detection would work better. That way you won't miss a room because you stood near it and the map makes it look like you explored it. It also would keep secret rooms secret. Besides that, there needs to be a height detection system on it. Most Alyeid ruins would be multiple stories in the same general area so the map would look like a boxy mess. If they made so every so many units of distance (like 256 or 512, whatever will ensure things on two different levels stay on those levels in the map) it would go up or down a map page it would really make the map not so... terrible. (A simple up or down on D-Pad to control visible floor and little arrows by where floors change to indicate if it goes up or down would work perfectly)
In final regards to the map, a way to take notes on it would be awesome. That being said, it is doubtful. so how about more than one map marker? Even one more would help so much. Just a simple menu like the regular (Move, Leave, Remove) menu, but with the ability to choose what colored map marker to move. Red and Green are already for quests, and Blue is a custom marker so lets add Orange, Purple, Black, and Brown. That gives you the quest markers and FIVE custom markers. That would be so awesome I can't contain myself.
Better Item Placement - Ok, this has been discussed before but I want to touch on it as it is a huge issue to some of us. Placing objects in Oblivion was agonizing. The worst part about it was that is was so easy to fix. I'll use the Xbox controls for this. LB picks up the item right? Well step 1 is to make it a toggle, not a hold button. Not everyone can navigate and hold down multiple buttons at once. Click to grab, click to release. Step 2 is a matter of being able to spin the actual object, not just move it. For this, just have RB toggle between moving the object and rotating it.
You aim at the book and press LB. You now move the book with the Right anolog Stick. However, unlike Oblivion, you don't hold LB, and the item will not rotate at all right now. If it was laying on a table with the back cover down and the top of the book facing Northeast that is the rotation it STAYS at. Period. If you pick it up and carry it up a damn mountain the back cover will still be facing the floor and the top of the book will point Northeast. this is where RB comes in. I know RB has a combat function, but how often do you multitask between interior decorating and melee combat? If you press RB while the move object is toggled it with stop the book from moving in the game world. The Right anolog Stick now spins the book. You can face it whatever direction you want, then press RB again and the book will move in the game world again but no longer spin. Precise controls. Let's walk through it with a book...
Step 1: Target Book and Press LB to enter Move Mode
Step 2: Move Book to Shelf
Step 3: Press RB to start Spin Mode
Step 4: Rotate Book until it stands up and the binding faces out, like in a library
Step 5: Press RB again to stop Spin Mode
Step 6. Finally place the now properly facing Book into shelf next to others
Step 7: Press LB again to set Book down.
It seems complicated on paper but I guarantee this is 100s of times easier to use than Oblivion's version once you get the hang of it.
Feel free to browse, but not to carouse. Oh Tom Nook... I hate you. Anyways add or talk about whatever but please keep combat out of it, there are plenty of threads on that and this is mainly about Atmosphere and realism of other mechanics. Also, if you quote this post, please "snip" it or only quote the part relating to your response, having to scroll down and see 9 copies of the OP's post on the first page alone is irritating. Cheers.