Ok I dont know if the devs actually read the topics but please, please for the love of god DONT sacrifice gameplay for graphics.

The graphics are already good enough, they were awesome back in oblivion, but the thing that really bugged me is that the IMPERIAL CITY, the seat of power had a population of like 100...
And the imperial legion consisted of like 30soldiers total.

Cant we have cities that feel like they are actually huge, with a lot of people.They dont even have to be named, just make some generic citizens walk around.

I mean the entire main questline in oblivion was building up to this massive battle against the people and daedra and all they could get was ~10 guards?

I don't know about you. But IMO it would feel weird walking among thousands of generic NPCs and have a dozen unique ones.

I see it working on battles, but I don't see it working on cities. Mixing generic with unique NPCs would annoy some.

Plus, those NPCs, even being generic they are crafted by hand, it would take a lot of time to create a hundred for instance. They aren't simply randomly generated. It's more like Megaton Settlers. Also, the Radiant AI would cause a lot of problems with a bunch of NPCs with full AI packages in one single enviromnent. And the models, armor, clothes and faces are also very detailed, having thousands on screen would kill your computer/console.

I suppose it's a question of sacrificing depth for atmosphere. I can't imagine it's possible to run an engine like OB's with hundreds of NPCs each with their own items, names, houses, often sub-plots and side-quests, all milling around in the street at once. Same problem for big battles.

Some generic NPC's would add a bustling atmosphere. I'd actually be happy to make that sacrifice, because I agree with the OP, the cities in OB and especially the Imperial City felt completely empty, noiseless and lifeless.

On a side-note, Skyrim needs more places of congregation, OB lacked there too. I'm thinking busy loud market places, roudy taverns, drinking halls and inns, and good-sized crowds cheering and taunting in the arena audience.

Thats my point, go easy on the graphics for better gameplay.

I dont mean make them wander around aimlessly, but give each of them a randomly generated name,face and inventory, give them a home and daily routine and a few dialogue options: rumors,what's new..etc

Tbh i dont see that happening, but that was my biggest problem with oblivion, and any other rpg with "UBAR L33T GR4PHICZZ!"