Ok, one more reply from me.
Unfondled criticism? I just said about some obvious mod errors, thats all. Which sadly cant be fixed without removing some mod features. What articles do you want? Heres some about lightmaps, z-buffer, some shadows types and raytracing. Its really easy to find by yourself.
http://en.wikipedia.org/wiki/Lightmap
http://en.wikipedia.org/wiki/Z-buffering
http://en.wikipedia.org/wiki/Stencil_shadows
http://en.wikipedia.org/wiki/Ray_tracing_%28graphics%29
http://en.wikipedia.org/wiki/Photon_mapping
Right. So. Since I trust Wikipedia articles about as far as I can throw them.....
Ray Tracing appears from a quick hop through Google to not be available in DX9 unless using Shader 3.0. Oblivion is a DX9 game, which makes very little if any use of Shader 3.0. I'm sure wrinklyninja would know more about the details. Lots of Google hits indicating it made it's true debut in DX11 though. So that's out. Oblivion can't be built around something that wasn't available in 2005. Yes, 2005. The game was
released in 2006 which means they spent 2005 working on it. Likely most of 2004 and part of 2003 even.
http://weblogs.asp.net/justin_rogers/archive/2004/03/30/104498.aspx was being talked about as some kind of new thing back in 2004. It might have been too new at the time to be considered. It appears to have been available in DX7, and from the description appears to be at least partially used in OB (landscape seems to act this way). Which leaves open the possibility that they intended to use it with statics as well but it isn't working properly. Hence it would be a bug in the game.
Z-buffering looks like it would be more related to fog, not light behavior with statics.
Lightmaps appear from descriptions to be performance hungry and might not have been considered for that reason.
So yes. "Unfondled" criticism sure seems to fit since we're dealing with what looks like a partially broken implementation of Photon Mapping in Oblivion. Remember, the game was designed with the XBox in mind and it's likely the poor little console couldn't handle the more performance hungry options that were available in 2004/2005.