There are some really awesome videos on the Oblivion site. The one that showcases the AI is particularly interesting. I'm curious (and mostly skeptical) as to how quickly it gets repetitive. The woman casting a paralysis spell on her dog because she is annoyed by it is cute once; how long until you've seen the "woman sets dog on fire because it was barking" exchange until it's just tedious?
But, still, the game looks amazing, and I'm glad that I no longer have to use console commands to teleport quickly from place to place. :)