Both were ok at the time of the game releases but what I'd like to see is some more dynamic movement of NPCs. I know the new Radiant AI system will take a leap forward when it comes to the point how town citizens will spend their daytime. But that is not all.
When thinking of bandits and marauders in Oblivion they only appeared in fixed places and were doing nothing until the PC arrived. That might be a point to improve by make bandits either join together in bigger groups and go on a raid. Or they could fight each other. Mabye there is also a way that we see specific groups of bandits, e.g one that consist of thieves (and is maybe a threat to the thieves guild) or another where only orcs or females allowed in? There are multiple possibilities to creaty a more dynamic environment.
What do you think about this?