Fortunately the popping and lower draw distance looks to be reduced in Skyrim. Look at these Skyrim/Oblivion comparison shots of distant objects.
http://download2.zenimax.com/akqacms/files/tes/screenshots/LakeMountains_wLegal.jpg Skyrim
http://i28.photobucket.com/albums/c209/dev_akm/oblivion/oto/noise/QTP3_BT2048_KMd_01.jpg Oblivion
http://download2.zenimax.com/akqacms/files/tes/screenshots/LakeMountains_wLegal.jpg Skyrim
http://i28.photobucket.com/albums/c209/dev_akm/oblivion/oto/noise/QTP3_BT2048_KMd_01.jpg Oblivion
I'd agree it does look better in the Skyrim picture. However there's not really any architecture on the furthest edges so it's hard to tell. I'm sure they have put some focus on this issue though thanks to all of the improvement mods for Oblivion. Especially the distant architecture mod that let you see ruins etc.
Was the view distance for Oblivion really bad on consoles or something? On PC with max settings, it's really good, especially for the time. Enemies certainly never popped out of no where for me, I could see them from a mile away.
If you maxed out the view distance it wasn't bad at all. There were still problems with architecture loading sometimes though.