keep in mind its a game from 2002, its 15 years old, yet you can still be immersed in the environment (especially the amazing sky). Almost no other 2002 or older 3d games have aged better, and if you throw a some high rez texture mesh \ mods (so people and the ground no longer have points sticking out lol) and a filter at it it can look surprisingly modern…(well, like oblivion levels anyway) although in my experience uses almost as much system resources as skyrim out of the box.
Arena and daggerfall are challenging to play in the modern world, you can physically run them easy enough as an emulator has the guts to be a “fast” system back in the day without breaking a sweat, but they lack the ubiquitous and expected sorts of layout you find in modern games. Also lots of stuff you need to write youself, rather than auto journals or quest markers. Finally that stupid mouse control fight thing in daggerfall S*&ts me every time.
In many ways they aged massively worse than the conceptually simpler original turn based Fallout games. Somehow they got things like dialog, quests, inventory so intuitively right that any modern player can work them, but you have to have your nostalgia goggles welded on to deal with the required save scumming that at times very unfair RNG based mechanics could involve… for example there are a fixed number of caravan gaurds, but the enemies are equal to 0-2x the size of your party. So with just you, the NPC gaurds will win without help, but bring dogmeat and the other dozen fools you can pick up and it becomes near impossible. I did really like the way stats like intelligence effect if you cna read, or get speech options beyond the occasional powerful “stat based good option” of later games though.
Also in oblivion there really is only a “good” path, the story is linear unlike morrowind or new vegas, so no matter how many people you murder the game doesn’t end till your a hero, even in the shivering isles or NotN. If you accept that is the only route and stop ever trying to be a “bad guy”, instead viewing all choices as only either selfish of selfless as you progress that path it makes more sense.
Trying to do all the daedric shrines is actually a reasonable challenge, but the rewards are over powered to the point of game braking (like finger of the mountain IMO, as its lower mana cost per damage than if you created it as a custom spell and effective vs every enemy in the game, same for the NotN complete gear if you have armorer high enough to repair it from normal wear&tear, its just better than other options).