I liked Oblivion's system better. But either could work for me.
whaaa? Psychic guards that instantly know you committed a crime on the other side of the province...no thanks. Region based bounties was one of the things I was hoping for. Why exactly do you prefer oblivion's system?
what would be cool if over time if your bounty is severally high in hold A people from hold B would talk about a criminal in the certain part of skyrim, and in a couple of days word will be passed to this hold B that you are wanted.
This should definitely be a part of it too. Guards from hold B should hear about you if your bounty is quite high in hold A. And if your bounty is high in several holds then all of them should hear about you. That would definitely help create a greater sense of an actual living world where things happen without everyone being completely oblivious.