Hmm... the characters look a little better, as do inside environments. The wilderness could look better, but since I'm on PS3 the blockiness and palette make me feel like I'm running around in Fallout 3. I'm constantly messing with the colors on my tv to find that perfect mix.
The mist/rain/thunder/lightning effects work quite well in adding to the atmosphere.
The combat is fine; all I really need for that is swing and block. It can sometimes be annoying that by the time you load up for a big power swing, your adversary moves out of the way and you end up with a big swing and a miss!
Control of objects by hand is still clunky.
I don't like the "yes or no" approach to quests. Give us more options next time, more grey areas that aren't so clearly defined.
Spoiler "Hey you, steal a ring and frame this guy for theft. What, you don't want to? Fine, I'll be hanging out in the marketplace waiting for you to change your mind."
and
Spoiler Hircine (I think) gives me a quest to kill the white stag. I go off to do it, but then decide to let it live and kill the other hunters instead. So I go back, thinking Hircine will not be happy with my decision, but heck, he's ok with it, despite that I didn't do what he wanted. He's just glad I killed something. ??? So I still get rewarded despite doing the exact opposite of what he wanted.
It would be nice if carriages didn't fast travel.
The markers are a bit overdone. Don't worry if there's a crowd, a white marker will show you exactly who you need to see! And if you want to turn markers or the compass off, then EVERYTHING gets turned off with it.