Then try mods that just adjust the level scaling, like francescos or similar.

I think my views on Oblivion are well known - I love the game and find it possible to enjoy RPing in it.

I have SI, and while I was always going to buy it to support Bethsoft, I'm not as impressed with it as I was with Oblivion. It's definitely catering more to fans of Morrowind, but I vastly preferred Daggerfall to Morrowind, hence also prefer Oblivion to Shivering Isles.

Re: fringe gamers, personally I don't think Bethsoft have abandoned them at all, rather they've brought mainstreamers into their otherwise fringe area. But if you still have misgivings there are still games like Gothic 3 and The Witcher