I couldn't agree more. Cyrodiil was supposed to be about 5-6 times the size of Vvardenfell, yet it felt like it was about the same size (largely due to the terrain being one big slope from north to south, and the fact that you could view the Imperial Tower from just about anywhere on the map). It really dashed my hopes/expectations when Bethesda tried to represent all of Cyrodiil by reducing everything 'to scale', meaning 1 mile represented 50 miles (or more), 1 farm represented 1000 acres of farmland, a football field turned into a postage stamp, etc. If they broke up the map into three or four parts, then the size that we got with Oblivion's release would have been a little easier to digest.
It would have REALLY been more effective to set the game on just the imperial island instead of all of Cyrodiil. You would have gotten a really huge and impressive looking Imperial City and the scope of the whole game would feel a lot more impressive.
Also think of this, you're pretty much isolated on that island, there IS a while province around you but all you hear are news that somehow get it, talk about a whole city being destroyed and maybe you can even see pillars of smoke rise and glows of the burning towns in the distance.
And even being that isolated, imagine a whole quarter of the town suddenly being attacked like Kvatch and quarentined, especially if that is INSIDE the IC and not somewhere around it.
That would have increased the feeling of urgency and a real invasion you're helpless against, just hearing that they destruction slowly devours the land around and even spilled in the most protected part of the whole continent.
But on the size issue, they REALLY need to adress that better, either make it bigger if it's a whole province OR try a more compact setting but then agreeing on just a PART of a province.
As far as leveling is concerned, I'd be fine with a more fluent system where you simply gain a level everytime you increase your major skills by 10 points, rather than having to sleep to get the level up. I'm kind of on the fence with regards to the multipliers, though. I like being able to increase my minor attributes a bit faster so that my character doesn't svck so much, but I don't think that I'd miss the multipliers if they were gone. I do think the multipliers encourage power-leveling too much. I know that I tend to pay way more attention to my stats than I should in order to get that 'x5', and as a result, I sometimes won't let my character sleep for weeks
I'd actually be for skipping the 10 level ups part and go to a fully fluent system, it did work nicely in Oblivion with mods.
And it did actually FEEL like you trained the attributes you used with your skills, while it may have worked a bit "slower" than with with multiplicator it did help to boost the stats you actually USED a lot faster than usual, especially since you got the bonus of it pretty much instantly instead of just at the next level up.
It's really more a "you get what you actually put into it" system but it works.