Why do people think it's just a matter of laziness that game companies like Bethesda have trouble making intelligent NPCs? AI isn't like graphics, science hasn't scratched the surface on what makes intelligent creatures behave as they do, how the hell can they simulate it yet?
I never have believed that it is laziness that keeps developers from creating intelligent NPCs, but some developers have been able to create NPCs that SIMULATE true intelligence better than Oblivion does. Of course, the games I've played which I'd honestly say have good AI were not sandbox games, and thus there were fewer variables the AI had to account for, not to mention that in a linear game, with scripting you can often make NPCs SEEM pretty intelligent by giving them scripts that tell them to go here or do this. In games, you really don't need NPCs to actually be able to think for themselves and have real emotions. It's enough if you can create a decently convincing simulation.
But I wouldn't say Radiant AI failed, I mean, it's already a big step up from Morrowind's AI, where NPCs would simply stand around in place and do nothing, if you were lucky, they might even WALK AROUND! Amazing! Yes... Radiant AI may not have been the huge breakthrough that would forever revolutionize AI in video games some hoped it would be, but it certainly seems like a step forward compared to what Morrowind had. The main reason some people were dissappointed with Radiant AI, I think, is that people expected more from it. And this was partially due to hype and partially because, as I understand it, Bethesda actually DID tone it down somewhat to keep it from messing up the game. But now, Bethesda has had some experience with this sort of AI, so I hope this means they can do better in future games.
Though honestly, I could live with NPC schedules as they were in Oblivion, and I really don't need my NPCs killing each other while I'm not around, that could just end up messing up my game due to things outside of my control. Now if I go killing random people and break quests because of it, I'm fine with that, because I brought it upon myself, but I don't want the NPCs doing that for me. What really bothered me about Oblivion's AI though was that the AI still didn't seem to really have been improved that much in regards to basic gameplay, I'm talking about things like the combat AI, the path finding, how NPCs react to players using stealth, and such, the sort of things you're bound to notice, I hope Bethesda tries to improve these things in future games. People often complain about how easy Bethesda's games can be, and maybe they'd be a little more challenging if your behaved a little more intelligently.