Zolgar: Overhyped? yes.
Mediocre? YMMV.
Nice living world? Most assuredly so.
Fenixp: Same could be said for Oblivion, and the world there actually felt more alive to me than in Skyrim. First of all, only a few events in Oblivion were launched upon your entry into an area, Skyrim's got tons. The game is revolving around you, the player - it feels like you're the centre of the universe. So yes, they've managed to make you a hero, but I don't think they've managed to create a good elder scrolls game, since that's about possibilities. The moment they start streamlining you into any single stereotype, it's harder to be anything else. Ans Skyrim makes it blatantly obvious that it wants you to be dragonborn, saviour of everything everywhere.
Furthermore, Oblivion's actually had a really robust AI behind it, just not as polished as in Skyrim. Sad part is that it did have people wandering on roads and doing daily activities as well, the system just broke from time to time and that's why people ridicule it instead of praising it for all the good it did. And don't even get me started on the joke that Skyrim cities are: cities in Oblivion were big. Actually big. They've had ton of civilian buildings that served no purpose but atmospheric ones. In Skyrim, there's always a civilian building that serves as a bloody dormitory so NPCs have a place to sleep at - and Bethseda didn't even configure daily routines properly for all NPCs!
The problem with Oblivion, for me at least.. had nothing to do with the world (the world was good), had nothing to do with the AI (The AI was good).. it was the story.
Now first, I have to admit I HATE the TES trope of starting as a prisoner. Every. Fucking. Time you start as a fucking prisoner. Either the authorities are a bunch of fucktards, or you're always playing a criminal. -yes, Skyrim has it too, I know. To be fair though it kinda makes sense in the environment Skyrim is in, because it could be assumed to be 'wrong place t the wrong time'. .. enough about that rant though..
So in Oblivion you're this ex-con, busted out of prison by the king (Patrick Mothafuckin' Stewart, points for Oblivion there!) simply because someone fucked up and put you in the wrong cell- but then the king has a vision about you being the chosen one or having some destiny and shit... I'm a fucking ex-con, what the fuck Destiny do I have that somehow your entire fucking ARMY can't beat?
Anyhow, in this highly illogical breakout by the king.. the king gets attacked by some super elite assassins.. who kill him and a bunch of his bodyguards (Blades, IIRC).. but remarkably don't manage to kill the fockin' barely-armed prisoner.
So, you get out of the underground tunnels and are thrown in to the world.. and are somehow expected to, as a random focking ex-con decide to follow your "destiny" and go jump in to portals and kill demon thingys. Why? Because Patrick Stewart told you to.
THAT is why Oblivion never got my interest until after IU modded the hell out of it, at which point I just ignored the damned plot and stole a shop. >.>
At least in Skyrim, there's several concrete REASONS to go be the Big Damn Hero.
If nothing else, the Imperials tried to have you executed for no apparent reason so you might want to pursue power just so you can fuck them up..