Well, one thing I liked about Arena was all the bizarre characters you had, like the shifty thief playing with his knife and the scantily-clad women in the taverns. Also, everybody was a jerk and didn't want to talk to you which actually kind of helped the atmosphere a bit there.
Most of Morrowind's taverns were called "clubs", where all of the elitist elves would hang around eating bread and drinking mazte. I think Pelegiad had a semi-lively one, though. Oblivion's felt like snooty country clubs to me, with the exception of some of the more populous ones out in the countryside (the one with the Nord giving you that quest to kill a troublemaking necromancer comes to mind).
Also, it wasn't the same once they threw out the cheery tavern MIDIs from Arena/Daggerfall. Whenever I entered taverns I could practically imagine people lined up along a great table clanking tankards sloshing with ale about, making a mess everywhere. I'm hoping Skyrim's bards will play music that's just as kitschy and annoying. If most of it is civilized minstrel stuff, it just won't feel the same. :sadvaultboy:
There were also so many of said people... and they were all animated... and random jobs could be taken from the taverns... and there were choices in available rooms (single, double, king, etc.)... and I liked Arena's inn theme that just doesn't seem to play in Daggerfall's (the non-annoying one), but I can't bring myself to switch away from my current sound settings (think I'm using soundblaster, but I'm not sure).
Regardless, the club comment reminded me of a tavern in Cheydinhal near the west gate (Newlands Lodge) that was a popular hang-out location for a local gang (the Orum gang; Orcs). It had a Dunmer bartender who told me that the bar was specifically a Dark Elf bar. The exact quote is as follows:
"Welcome to Newlands Lodge, the best place to drink in Cheydinhal. Not counting the Chapel... haha. I'm Dervera Romalen. This is a Dark Elf bar. Cursing, spitting, and screaming? No problem. Fighting is fine with me, too, only the Guard objects, and they'll fine you or lock you up. Not my call."
I want to see and hear the cursing, spitting, screaming, and fighting and I would think such a thing would no longer be an issue with the AI Bethesda's conjured up, so I think it's time that AI was put to good use. I'll be expecting amazing taverns, Bethesda. :stare: