Then where the hell did they put the rest?
I would imagine they were put to work on individual characters, important quest related stuff and things like that. The people you will need to (or want to) talk to again and again.
It's a bit like asking why no shop keepers had Patrick Stewart's voice.
Because in Morrowind and Oblivion you were greeted as you would be in real life, with a simply hi or hello.
NPC: Seen any elves lately? Hah ha hah.
Me: I get it, because I'm an Elf right? Are you related to the commoners in Syeda Neen? Because they liked that one to.
Though to be honest I never minded that one even though I think my first Morrowind play through may have been glitched since it seemed 6 out of 10 NPC comments would be that one.
I don't walk up to strangers on the street and tell them about my life story selling vedgetables with my mother until I took an arrow in the knee.
Yeah, but that's just because most people in Skyrim have poor social skills. :biggrin: