Well, I've always loved TES. In fact, Daggerfall is among my favorite games of all time.. and Arena will always have a special place in my heart for several very specific reasons.
However, IMO Morrowind was a huge blunder. Your hand was held like a little baby throughout the entire game, which really put me off. The plot was largely uninteresting and drawn out. Character advancement was a joke, as was difficulty scaling.. and most of all, it was just boring. Coming from the awesomeness that was Daggerfall, I was basically disappointed to the extreme. That being said, it wasn't really a "bad" game.. and I didn't lose faith in BSW.
I won't be able to pick up Oblivion till Friday, but I'm expecting it to be mostly faithful to what TES can and should be. I'm still expecting issues with the Radiant AI, though.. take a look at this scenario -
You break into some poor lady's house and steal her apples. There's a certain farmer out there who delivers apples to this lady on a daily basis.. though unfortunately, you went off and killed him. Growing impatient and hungry, the lady heads over to her next door neighbor and steals his apples, only to be killed by the guards. Now you've screwed yourself out of any quests that involved this poor lady, not to mention what would happen if she had anything to do with the main plotline..
Unlikely, maybe, but possible.. and I'm sure you can imagine many more scenarios in the same vein. Granted, BSW did say that they've taken measures to prevent anything "game-breaking" from happening, but I'm still expecting something silly to crop up. Radiant AI is a really cool thing and can do an awesome job in bringing a world to life, but it isn't without drawbacks.