Other than the awful Morrowind combat I agree DW.
The problem with Oblivion is there is NO reason to explore ANYTHING. When you level up, enemies level up. Yeah, Daedric armor will only drop at high levels, but you don't need it unless you're high level to begin with!
The point of leveling up is to take on tougher foes, explore places you couldn't before, get those awesome items that were unattainable. So why level up in Oblivion? Hell, not just why level up, why explore? Why go do that sidequest? You don't need the skill increases, it won't make the (easy) mainquest any easier.
Morrowind had unique items hidden throughout the world, so much more lore, backstory, and depth, not to mention you couldn't be a hero at level one.