Someone at Bethesda has played a prank and made the fonts in Skyrim incredibly squeezed together and very difficult to read. Oblivion had excellent fonts, so why change something that works?

Is there a way to make the in-game fonts readable in Skyrim?

Yes - there are several mods that do this.

For starters, there''s Main Font Replacement - http://skyrim.nexusmods.com/mods/95

Edit: for book fonts, rather than menu fonts, there's Alternate Book Fonts - http://skyrim.nexusmods.com/mods/4174