very disappointed in this game compared to Morrowind.
I can't imagine any angle which you would approach this where Morrowind is better than Oblivion.
Morrowind has 4x the number of NPCs located in 2x the number of cities.It has nearly 8x the number of lines of dialogue.
It has more than double the number of guilds.
It has more spells, more skills.
To finish your quests, you actually have to read your journal and pay attention to what people say.
That all leads to a more immersive world.
When you level in the game, you have a sense of accomplishment in that the things you had a hard time with are now easier and that you can now do things you couldn't before. Oblivion says: "You can do anything at any level, we'll scale it for you!" which completely removes any sense of accomplishment. Added to that, once you hit level 15+, EVERYTHING in the game has full daedric or glass armor - ie, the best and rarest in the game. Ok, Mr. Bandit is now as strong as Divath Fyr was in morrowind, the ONLY character to have full daedric and one of the most powerful wizards in the Tamriel world.
Morrowind has unique items which can be obtained throughout the world. Lots of them, in fact. Oblivion has 6, total.
I could name more, but that's enough to prove in my mind that Morrowind is a superior RPG in almost every way.
Granted, Oblivion has some very needed improvements. Namely: the new combat system is WAY better, the spell casting system is more streamlined, the graphics look terrific, the new monsters are well done (mostly - trolls look silly), and some quests have been better scripted.
But the AI system for the most part is ########, which was the biggest reason behind the lack of NPCs in the world. NPC interaction consists of: "Hello. Heard any news?"||"Yes, I heard that ..."|| "Wow. Ok. Bye."|| "Bye." which is terribly lame.
Morrowind, redone with Oblivion's graphics and spell/combat system but sans voiceovers and radiant AI, would be the vastly superior game.