You talk as if this type of combat was never seen before in any other game ever made. Hey, guess what? Morrowind had the same stuff you're talking about! You'd "never know" what kind of attack someone was going to do in Morrowind either, until... they attacked you with it.
In morrowind's combat system, it didn't matter, I didn't have any choice about what to do anyway, I could swing my axe or swing it in a manner that did less damage. I have more choices in gothic 2, but the enemies have absolutely no variety to their attack patterns.
The three types of melee in oblivion (1 handed + sheild, 2 handed and fistfighting) each have different speeds and blocking patterns, which makes your choices about attacks, power attacks and blocking meaningful.
So oblivion combines enemy variety (like morrowind or daggerfall) with player options in combat (like the gothic games), this makes it different from any of them. It's combat system is still far less sophisticated than jedi outcast, but it's still better than any action RPG to date.
It doesn't matter if you're level 1 or level 50, they're going to do the same stuff to you. The only difference is what level tier or level you're at, which was the point I was making. When you level, everyone magically levels with you. Once you advance to the next tier, all equipment magically changes across the land. This is dumb and lazy design.
But if everything's the same at level 1 and level 50, then it *doesn't* matter what tier you're at. Each encounter is different because they're random, the encounter isn't dependant on your level, but why should it be?
Who's talking about Diablo or MMORPGs? All I said was that it sure would be nice if I could upgrade my stuff when and how I feel like instead of the game deciding for me. If I want to brave that trek across the world at level 1, sneak into a cavern guarded by monsters who could crush me instantly just so that I can steal a weapon far more powerful than I'd see in a long time, why can't I? Limiting the choices players can make like Bethesda did *IS* treadmilling. There is no point to levelling because everyone levels with me. There is no reason to seek out better stuff because everyone gets the same crap when I do. What's the point of even playing the game if everything is the same, always? Why can't you understand that?
If you do something difficult and feel you should get a balance-breaking UBAR SWORRD, just open up the console and give yourself one, if the gameplay isn't fun in and of itself, how is the game periodically giving you UBAR ITEMS!!! going to make it any better? So you *can* upgrade your stuff 'when and how you feel', but what possible purpose would doing so serve?
Dungeon Siege, Diablo and MMOs all have crap gameplay and people still play them because play time is rewarded with stats going up and PHAT LEWT!11!, if that's what you want out of the game, play them, DS2 will give you all the loot you can handle.
I've played every CRPG game produced since fallout except DS2, the diablo series (and diablo clones like sacred), MMOs and H&S (if you consider it an RPG). The vast majority have involved a certain amount of equipment-upgrade bullshit, the worst I've ever played in that regard is final fantasy tactics which has identical items upgrading like clockwork every chapter (just like the TES series), the next in line would be dungeon siege which barrages you with crap to sift through after every encounter. I'd personally like to see the whole stupid system abolished but as long as there are people that enjoy watching numbers go up on a screen, It'll never happen.