To be fair, the fine men of the Imperial Legion are basically demigods in unmodded Oblivion outside of that emberassing little episode at Kvatch and whenever they're scripted to be on your side :P
But it's like I said in the OP. In Morrowind, buildings were designed to be lived in. In Oblivion, everything but houses is basically a dungeon. The forts and ruins are both nothing but tombs, which is a nice excuse to fill them with zombies and all, but Morrowind pulled that off nicely with buildings that actually were tombs.
I understand it works like this:
Morrowind's overall map size is larger, HOWEVER, Oblivion has more actual land, as Morrowind's map is like, %30 water (and, as I recall, basically goes on forever).
Either way, Morrowind FELT bigger. As you said, variety of terrain and culture made Morrowind great, whereas in Oblivion it's basically all the same. Yeah, the towns change architecture, but it either feels same-y or forced, like Bravil.
An entire town of slums? Why would ANYBODY choose to live there when there are nicer towns a few hours walk away? With good roads, no less.
At least Morrowind had the good sense to isolate it's shanty towns, or make them ports.
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