1. The "old-school" RPG players, as you refer to them, were Arena/Daggerfall fans who picked on Morrowind before any Morrowind fans picked on Oblivion, and Arena and Daggerfall had fast-travel systems more akin to Oblivion's than Morrowind's.
Well aware, and I can sympathize with them, even though I've never seriously sat down and played DF, or even recall seeing Arena. I'd like to see some of that lost content and diversity, along with the political undertones and meaningful decisions, return to the series.
FT was a requirement in a game which was several orders of magnitude larger, and it had "consequences" for using it. MW's "public transportation systems" approach was far from the perfect solution, mainly in how you were the only passenger and there was no "schedule", but it worked well enough in that situation that I can't really gripe about it. The various other forms of teleportation (Guild Guides, Mark and Recall, Interventions, Propylon Indicies) allowed you to circumvent a lot of the difficulties once you learned your way around and figured out the tricks to it. They were just FT with a fancy wrapper, but the wrapper made them palatable, at least in my opinion. My issues with OB's FT weren't that it was present, but that it was nakedly exposed for what it was. Besides, there was no reason NOT to use it, and a lot of reasons why it was impractical to do otherwise, such as not being given directions better than "a ways North of here", which narrowed your search to only 1/4 of the map. It was far more "immersion breaking" not to have carriages, merchant caravans, boats on the rivers, or other forms of transportation (aside from a couple of permanently docked galleons) present in the game at all, especially at the very heart of a vast empire. There was no alternative to FT other than walking (horses were a welcome addition, but often proved to be even slower than walking), and even that was made difficult by the poor quest directions and scattered quest locations, which were made under the assumption that you would "of course" use FT.
As for your other reply, I'm here because I don't want to see the next TES game end up farther down that same road which OB took, where the RP aspects are still there, but have been stripped of most of their relevance to anything in the game. There are enough FPS titles out there already, and TES is about the only serious open-world RPG left. I don't intend to give it up without a fight.
FYI, I LIKED the original FO game, but feel that Bethesda made the right move in updating it to a FP perspective game, fixing the clunky and obsolete interface, and making it a bit easier to deal with than "reload after every other encounter". I didn't like what they did to choices and consequences, though, because there were very few of the latter. No matter what, you got rewarded. Even blowing up a town just resulted in the most "critical" NPC being converted into a ghoul and reappearing in a new place, and any negative feelings caused by the deed could be "washed away" with a little water handed out to beggars, or other simple workarounds. When your actions have no consequences, that's not a GAME, in my opinion. Like OB, the graphics and landscape techniques were far better, there were some excellent quests mixed in, and there was potential for major improvements, but the SOUL of the game was lacking.
So, what I really hate about TES, if anything about it can be "hated", is that it attempts to cater to two very diverse markets, and is steadily leaning more and more toward the one I care the least about.