Oblivion, on paper, is an objectively better RPG that is truer to the Elder Scrolls formula than Skyrim

Hard disagree on that one. It's truer to the Morrowind formula, but Morrowind itself was a radical departure from the previous TES games' design philosophy. And I despise Oblivion precisely because of that, because it slavishly apes Morrowind's formula without really understanding what made it tick. I'll spare you the diatribe. Morrowind was a great triumph but also a turning point for Bethesda. Up until that point, they used to make varied games. Ever since they found success with Morrowind, they've stopped trying to innovate and improve and have just been remaking the same game over and over with a slightly different coat of paint each time.