Oblivion is basically Morrowind with a facelift. Looks better, but still the same things that frustrate you to no end...
Lets think for a moment... how many "successful" 1st person RPGs are there? Oh... less than the fingers on one of your hands... and a lot of them are on older consoles, like the NES and Genesis. At least they had excuses to validate having it in 1st person. But get this: Bethesda lets you go through a character creation fan's dream... tons of ways to customize your character and make them look unique. Once that process is complete, you better hope you made good looking hands, because unless you switch to the not as "precise" 3rd-person mode, or press down the R analog stick and enter vanity mode, then you won't be seeing much of what you created. In my opinion, that's utterly stupid and a huge waste of time.
Once you start moving and looking around... flashbacks of pure Morrowind horror rush through your brain as you realize... "I've... done... this... BEFORE!! NNNOOOOOOOOOO!!!" Yes, the same clunky controls are back for Oblivion. You can't focus on what you're trying to kill... mostly because you can't see where its coming from until it has already attacked you several times. You can't find anything really small when you're in 3rd person mode, so you have to switch back to the unnatural 1st person mode.
People might say the same thing as they did with Morrowind. "Just sudder though the first town and then you'll get to the good stuff." Umm... I suffered through that town for hours without being able to figure out what I was supposed to do. In Oblivion's case... it was trying to get out of that dungeon. I got fed up with it... too frustrating... took all the fun out. So, after only about 2 hours of playing, it went straight back to Blockbuster to await the next poor sucker that wanted to waste $8.