The Biggest Difference between Morrowind and Oblivion was the shift in the setting, It felt almost as if Oblivion rather than being set in the same universe as Morrowind was in the world of a computer game made by someone living in Morrowind, as the amount of simplifications were about the same. From an Empire on the brink of collapse and awash with rumours of false heirs and corruption only held together by expert political manoeuvring and conspiracies and a vast web of spies and agents and financial interests, which made a point of good and evil being points of view. To Oblivion, which is entirely good vs. evil. insane black robed necromancies, mad cults and an invasion of demons.Everyone loves the Emperor, House Dres is voluntarily abolishing slavery the Imperial Province is more sparsely population and undeveloped as the most uninhabitable corner of vvardenfell, the blades transformed into shinning knights and the general population turned happy, trouble-free and deeply generic.
So that the thousand improvements in the mechanics, graphics and especially interface in Oblivion, were wasted on a game with none of the elements that guaranteed the unlimited replayability of Morrowind. No doubt Skyrim will be even better than Oblivion, but will it combine those steps forward with the same steps back?