Obviously they found something flawed with them so there's probably a reason why they weren't included in Oblivion and Morrowind.
No, laziness. The fact that they are over blowing rather minor features (dragons are the only things worthy of the doting they peddle and even then) is evidence enough of that. They're trying to make up for it with distraction.
I'm sure they'll compensate for that 1 less armor slot, and if they don't I can see why. It might just be a balancing issue seeing as you can become full chameleon in oblivion.
The only reason full chameleon was ever considered a problem is because a bunch of people coming off their daze from whatever multiplayer game they were playing started applying multiplayer design ideas on to a single player game. Things like excessive balance, feeling guilty about abusing what is powerful (even though they're perfectly legitimate options), and the fact that apparently many of these people also still carried the idea, albeit a rather subconscious one, that if you aren't using what is easiest to succeed with, you're failing, which is how it is in every MP game. Thats why people always decry people for using a certain gun or power or whatever. But none of these things matter in a single-player game, where you make what you will of the world given to you. If you want to use the most powerful things in the game and just have yourself a cake, more power to you. If you want to go the opposite direction and deliberately gimp yourself, you have the same freedom.
And this was only further exacerbated by the fact that enchanting got far easier than it was in Morrowind for no good reason at all.
they are taking everything in the game to new heights No, they aren't. For every slight improvement they make, they make something else worse and thats bad game design.
the graphics are through the roof Irrelevant. Graphics mean nothing and in reality having such a large focus on graphics tends to take away from other things that actually need focus
the spells arent the generic fireball type things in oblivion and Which is what you would expect out of them anyway. Beth would be idiotic not to update the looks of magic.
they have new weapons armors and even FINISHING moves for combat now Aside from the last thing, which doesn't add anything significant to the games (oooh I can kill people pretty now, whoopdie doo), this is again what you would expect out of them. That would be rather sad if they didn't bother to create any new weapons or armor and just ported everything from oblivion.
I never understood why streamlining was bad. Here's the definition:
Being modern is not always a good thing.