That's all good except 2 things- 1st they aren't "scripted". 2nd they didn't only stop "civil wars", they made NPCs almost completely static. They only sleep, wander around and few of them do one choir here and there.
i said that much of the stuff in the demo was scripted, as for npc behaviour it's partial scripted as their ai package tell them to sleep they search for a free bed, eat and they search for food then eat, either from inventory or from tables, they can even find food in containers, city swimmer has no food so he tried to take it, if spottet the guards will chase him and kill him as it's no mechanism for npc to surrender to the guards.
Except for this and the incredible stupid conversations the system works in that npc move around from cell to cell and look like they do stuff, not standing still all day or walk a paht in a small area like in Morrowind who was the main purpose.
And no I don't see the system very improved in Skyrim even if they says so.