See that where your going wrong, it's not that people are just standing there waiting, turn based "turns" are "segments of time" Say each turn is 10 seconds of real time. then you take everyone's turn for the round (Everyone goes once and it's back to the first guy) and play them simultaneously you'd have what happened in "real time" for that 10 seconds. gamesas made it the way they made it because they can't seem to be stuck in TES land I think. Instead of making a more Fallout system they chose to just modify the already in place Oblivion system. Could they have made it in line with the originals? I betting they could fairly easily. I'd imagine it was a cost cutting maneuver to just use the old code. also to appeal to there TES fanbase wit ha familiar gameplay system.
As for the "rose tinted glasses" comment I'll refer you to some ones Sig, it goes something like this: "it's not nostalgia, if your still playing it."
How ironic, it actually IS nostalgia if your still playing it. I doubt very much that people have played the old games again and again non-stop. They would have went back for a reason. The reason would be what fond memories they had of playing the game. That would be nostalgia.
Of coure they used the Oblivion engine to capitalise on ther already huge fanbase and why shouldn't they? As i said earlier, writing new code and creating game engines takes a hell of alot fo time and money which is better spent on the content.
As for the turn based combat, i know it's supposed to be on the fly but it doesn't change the fact that it's still happening at slugs pace and doesn't ever give the impression your doing anything on the fly so each turn could mean 10 seconds, 1 hour, 10 years it still doesn't change a thing.
Could they have made it more in line with the originals? yes. Course they could. IF you mean by putting turn based combat in that would pretty much half their sales if not worse but as for content, story and the old fallout feel yeah they could have. I don't know why they didn't. Maybe they just thought they could put a better spin on it? Or simply tried to aim at a different market. I think they wanted to please old fans aswell as gain new fans and have their oblivion fanbase in the bag too. Which is impossible to keep old fans happy if that's the case.
They could have done that with a more fallout 1 related dialogue mechanic though.
Still it's not tTHAT massively out of touch. It's just a different twist on it really. I can't get enough of post apocalyptic stuff and i don't mind people 'messing' with the old stuff to hit on something good. they might fail but they might succeed. Better than fallout 1.3