More player based does not mean not character skill based. Defending Morrowind in places that it just shouldn't be defended include its combat system, yet it's defended there, under the guise of "more character skill". Feel what you want, but it's just a crappy system for a first-person, real-time game of any kind, in my opinion.
Calling Oblivion character skill based is ridiculous. The skills determine hardly anything. There's more damage done, sure, but lockpicking is actually easier to do manually than to find more lockpicks to replace those you broke with 100 lockpicking. speechcraft is just completely irrelevant. I don't know of anything, other than armourer/alchemy that has a real impact with higher skills.
And, I can kill anything with any level in a weapon skill, because everything levels with me. Once I start to do more damage with my higher skill, the enemies that spawn have more health, and it completely cancels it out. The only thing that really makes me have an edge over an enemy is a better weapon.
Again, being player based isn't a bad thing, it's entirely dependant on what you like. Just, calling Oblivion character based is ridiculous.
And I was defending Morrowind? I believe my post was the first one, other than the OP. No one was there to make me want to defend the game.
As Stonefrog said, Morrowind isn't "the epitome of character skill", and even that needed to be improved upon, I just think that Oblivion took it too far away from character skill.