The Oblivion realm looks nothing like the realms you visited in Oblivion. Anyone more informed on the lore willing to explain this without spoiling too much?

I also noticed the combat of Werewolves and Valmpire Lords was presented in 3rd person view. From my little experience with Skyrim I remember that was a pain in the ass, surely the picked this way mostly because it looks better rather than having improved it to play better?