Well, it seems that everybody has forgotten the AI in Oblivion.
Bandit 1: How are you?
Bandit 2: I saw some mudcra- ugh! *arrow hits*
Bandit 1 immediately walks away like nothing happened.
So don't even start with this.
Yeah it's really been improved for Skyrim
Bandit 1: How are you?
Bandit 2: I saw some mudcra- ugh! *arrow hits*
Bandit 1: draws sword and stares at wall
And I also want to expand on how stupid the shock argument is. If he was in shock, he wouldn't have drawn his sword. If he had enough sense to draw his sword, he would have had enough sense to at least stagger backwards, or quickly look around for the attacker.