While I don't have a problem with VD's style, I do think that labeling the questions as stupid is an error. Where you make the case that the movement of water is inconsequential or lacking in value, I make the case that it tells a large deal.
Right now, Oblivion has extremely limited information released about it. People are trying to get every scrap of information that they can, and once they have enough pieces, try to extrapalate a greater whole.
In the instance of the water, modders who have a specific mod idea in mind, could be used to set a specific mood. If the water does respond in a realistic fashion to the players movements, the modder could create a world where it takes advantage of that fact. Carefully placed changes in coloring of the water to make it look as if there is blood from a nearby corpse, and depending upon the complexity of the engine, possibly leaving blood marks on what the character is wearing.
Another scenario would be an aquatic creature (say a 'blob' or a water elemental). If they could actually assign water properties to this creature, then when you swing through it, the entire creature would ripple. You could also assign the need to having a magic weapon to slay one due to the fact that your weapons pass right through it.
I think labeling those questions as stupid is inaccurate, although I do respect your right to have an opinion and display it. I just think you may want to look at it from all points of view.
