I don't know how Bethesda got to be as popular as they did, but I'm glad they are.
Morrowind had a very poor (IMHO) combat system that wasn't friendly to new players, it's one reason I gave up with it. Sure, it had acceptable graphics and was huge, but I can't play a game where repeatedly slashing a rat results in my death. It also had the Same-Voice-Everywhere syndrome of later Bethesda games.
Oblivion had, to be honest, crap graphics. My characters had odd blue/green squares on their faces, most of the plate armor sets didn't have female models, texture pop-in was at a stupidly short range (even on maximum) so the ruins around you could look nice, but the mountain in front of you was an eye sore. I never had any reason to use a Horse, and I don't really plan to. Luckily the combat was "fixed" in a way, but the leveling was dumbed down immensely. And don't forget Same-Voice-Everywhere Syndrome.
Fallout 3 had much better graphics, better gameplay, a wealth of places to explore. But it suffered (IMHO) in regards to PCs. There were too few options on the Gene Projection thingy per page, so you were continually scrolling up and down. The hair was like Oblivions' - Plasticy, shiny and just wrong. It had Same-Voice-Everywhere but not as bad as it was in their previous games.
Back to topic: Meh @ the video. Outside the city looked great, even if it was a bit too colourful. But inside the city? I didn't notice anything apart from the outer ring being one giant section.