In Oblivion, you've got eight somewhat generic cities (Anvil, Skingrad, Chorrol, Cheydinhal, Bravil, Bruma, Leyawiin and the Imperial City) all ruled by a lord who lives in a castle which looks like every other lord's castle, and everybody's happy. And beyond those cities, good luck. You may find a "village" or so (Borderwatch, Blankenmarch, Pell's gate and such), being a set of a few houses with no dialogue at all. In fact, those villages are so useless, they are often only there for a single quest which justifies their existence. I should say 90% of Cyrodiil's population is composed by yuppies. Yes, well-off people who don't seem to have to work much for a living, own a quiet shop or inn, or just spend their time in the guildhouse and are happy. Then, there are one or two standard beggars per city (who trick you with their sickly voice only to boom THANK YOU, KIND SIR! in an athletic, manly tone after you give them a coin). One wonders why there are beggars, as there is no lower class at all. There are no politics beyond the counts, no nobility beyond the counts, nothing. The only "knights" you'll find are the comical "knights of the thorn" and the perhaps even-more comical "knights of the white stallion". Where are the working classes? Where is that overwhelming majority of miserable peasants, feeding those cities? Where are the endless fields of grain? Peasants can give extremely interesting scenarii, as was shown greatly by
The Witcher, in which both urban and rural medieval settings were poignant, terrible, and grimly realistic (in a fantastic sort of way). In Cyrodiil, rather than the packed, overcrowded, squalid, disease-infested places that fortified cities were (there is nothing more overcrowded and fetid than a fortified city) in which dozens of people packed into single houses, you have a nice, airy city with huge empty spaces and gianormous three-story dollhouses for people to live in. Puh-leaze!