I think it's almost definitely nostalgia speaking.

Granted, by the point Oblivion was made I was the nostalgia guy talking about how Bethesda games kept getting smaller and less ambitious. Most people saying that then did so because they were coming from Morrowind. Not me, I am a proper dinosaur and I was just pissed that after Morrowind dropped everything interesting about Daggerfall to make a console game they just kept moving further in that direction.

Was also not a fan of Fallout getting turned into Oblivion 40K instead of a proper turn-based CRPG.

Which goes to show this conversation isn't new and gaming is old enoung now that it has gone in cycles.

I mean, seriously, Daggerfall was continent-sized and was using procedural generation to make dungeons and build dialogue and quests and essentially reimagining how games could be made in ways that wouldn't resurface until what? No Man's Sky? Oblivion is bad Lord of the Rings. If anything it's the awkward middle child now, because man, the Imperial City in Oblivion feels hilariously tiny and basically deserted against modern RPGs. There are five people running loops and having canned conversations. Coming from Baldur's Gate 3 or Cyberpunk to this is... a bit of a shock.