More evolved and more fun than Oblivion, but there is room for improvement.
Things I like:
1. You can interrupt an opponent's powerattack by bashing him. This means you have to watch what your opponent is doing and react accordingly. Player involvement = fun combat!
2. It's possible to Dodge certain attacks by using appropiate foodwork. Dwemer spheres and Giants are two good examples. If you start circling a dwemer sphere when it is about to do its charge attack you can position yourself at its back and land a couple of free hits. Similar with giants: if you sprint towards them when they are doing their overhead smash you can reach their back without getting hit. Then you can retaliate. Again, having to pay attention to your opponent = player involvement = fun combat.
3. Fights against mages have improved substantially thanks to wards. Now you can finally block spells (pity you can deflect/reflect them though)
Things I don't like:
1. High level enemies still are health sponges. Bethesda still thinks that more HP = more difficult. Wrong, wrong, wrong!
2. There are no collissions whatsoever. Weapons clip through opponents, walls etc. as if they were holograms. On top of that, opponents don't react when getting hit. Nothing breaks immersion like an archer happily firing arrows at you as you are pummeling him with a warhammer. Mages also love to keep casting flames at you as you are hitting them again and again with your sword. It looks so incredibly fake that it hurts.