It always seemed crazy to me in Oblivion that we had no option but to drop everything one item at a time. Logically, all that stuff we're carrying would be in some kind of backpack. Why can't we just 'drop inventory,' or 'drop pack', then pick it all up later? Two times stand out when you had to drop everything: once, before Harrow (you had to give him everything, so of course you just drop it first then double back and pick it up before following him, because you need weapons etc in the coming fight. And blundering around in the dark there looking for tiny objects, such as rings, was maddening). The second time was before diving into the well to get the Ring of Burden -- if you carried anything else, you drowned.