Actually, there was some respawning, but only for Daedric creatures, Corprus beasts, Sixth House monsters (Ash Zombies, Ash Slaves, Ash Ghouls and Ascended Sleepers) and also maybe Undead (not so sure about this one). Sentient opponents such as bandits and Daedric worshippers did not respawn, which kind of makes sense.

I liked the Fallout method, as others have said it's nice to get the feeling of a job done, area cleared, though as I recall in Fallout there was still a chance for respawn, I've been back to previously cleared buildings and found a couple of supermutants roaming around.

I do think it's a little bit odd in Oblivion where a dungeon you've absolutely decimated is back to full strength within a few days. :toughninja:

That makes sense, remember some locations had instant respawn like in Daggerfall, and then half of the spawn was golden saint it was a nice way to get the rare standard weapon you wanted like ebony staff or daeric spear.