The underwater combat, or lack thereof, gets even more unusual when playing an Argonian. Who would probably be more at home underwater to some extent, but nope, still cannot fight. Would have been an interesting combat bonus though, similar to the Khajiit's unarmed damage bonus, i.e the Argonians getting a bonus to the same while underwater. Might not be to practical if all you have to fight is slaughterfish, but...it would help. In fact, it almost seems like the same problem that Assassin's Creed had, but it doesn't kill you, just make you unable to fight.
The lack of the left-hand sword and the staff is...odd. Especially how the left hand sword just disappears, and for the staff, well, I have the guess that the game treats it like you are just holding a spell, with a different casting animation.
Especially for a few of the shouts which upon finding the first word, you love what it does, and want to find more words for the enhanced effects. But after quite a few dungeons you haven't found it, and resort to looking it up - and the last word is in a location that relates to a questline you simply do not want to do. Especially bad for the Fire Breath Shout, since while you can access the dungeon one of the words it is in, without being on the related quest, it's only one room and a few enemies, and that is as far as you can get. Others can be just as bad, only they don't tease you at all.
The only reason I can think of for removing item degradation is due to the fact that you can improve weapons and armor. Sure, it could just degrade back to it's normal state(and perhaps have a additional "broken" state), but that just means having to either keep the hammers, or require the player to return to a forge to fix the item(s). This would be a perhaps more interesting method to raise Smithing, but annoying if you also need to use more and more materials to repair it back to Legendary. As for spell making, I'm not sure. But then again I didn't use it too much in Oblivion.
As for mine...
Lack Of Recognition - Not in every case, as it does happen. But more so in the few quest which perhaps your race should be mentioned in some way, it isn't. Not always in a derogatory way, obviously, but some kind of mention. Like surely some Nords would at least voice a slight..."Huh?" at the mention of a Khajiit or Argonian Dragonborn? Or one of an Elven race? Again, not always in the sense that they are against the idea or don't believe you, but something.
NPC Recognition Of Quests - Something similar, but while I don't find this too annoying, I find it odd. What I mean though, is having certain NPCs say only one line, which might work if you haven't done too much in the game. But if you have, say you've become Thane, suddenly some of their comments don't make any sense. Like them having no idea who you are, or thinking you've just arrived in the city/hold. In some cases, an NPC might have no idea who you are, or care. But in others, they should to some extent.
Static Magic Effects - Not for weapons, but the spells themselves. Like the Fury spell. How long before that is useless? Yeah, you can find a better version that will work, but soon enough that one doesn't effect NPCs either. I'm not saying that spells like those should be gained once and upgrade as you level the related skill, but more so that while the spell could have a max level it is absolutely going to work on, perhaps higher levels would at least have a chance for it to work, even if the time might be cut in half.
You Are Carrying To Much To Be Able to Run - The weight limit or items having weight I have no problem with. What I do have a problem with, is when this bloody message appears, and it will constantly be spammed until you deal with the issue, and even more so as you do whatever to go under the limit.