I don't know if this has already been adressed, but there are some changes in behavior that I would like to see in a new TES game. Namely, changes about reaction of different NPCs to danger:

1. I was fighting a Troll today near a fire place. Troll happily stood in the middle of the fire place and it seemed had no effect on it. An opponent should avoid going inside burning fires, when not pressed, or fire should affect him/it (especially trolls).

2. Non-essential unarmed NPCs must RUN, when they only see bandits and/or wild animals, and do not go into hand-to-hand combat. Typical example - sheep herder near Skingrad, who always ends up dead 100 meters from Skingrad gates. For reality's sake, essential NPCs must do that too. It is stupid to hand-to-hand with a bear. As a general rule, running away must be much more frequent in different situations.

3. Healthy animals should never attack people on sight.

If you have other small changes, you would like to see, or comments, please share here.

Well, for #3 they've said that far fewer creatures are instantly hostile, only attacking you if provoked.

Be it a skill or not, I will kill a dragon with my fists. I will find a way to do it. It is not stupid. Stop saying silly stuff like that.

Anyway, yes for smarter ai. Mages should know to use life detect or other spells like that. Archers should try to always use the highground. Assassins should actually try to sneak up on us. Teaching them how to jump would be a huge deal too.

I agree with these suggestion. More npc should run, some old women should not get into a fight with a some dude wearing armor and sword.

Exactly such changes must be done and thats can be done, Radiant AI capable to handle such things, devs rewrite pathfinding mechanic so in conjunction with improved AI, thats will work well,
Oblivion shows many improvements over Morrowind but such potential was not used in full power or was implemented in flawed way, devs know powers of Creation engine and can use them not ignore them.