Now we have it that BSA files win over loose files on one hand and on the other we say that Archive Invalidation is no longer an issue with Skyrim (I've been directly told this). That, to me, seems like contradictory information that also will lead to more confusion.
Ah, OK, I see the issue. You are not merely being "lazy" in your speech, you are actually misunderstanding the issues. If your understanding were correct, I'd agree that there are enough similarities to warrant using the same term.
OK, so, for an overview of why this is
not ArchiveInvalidation, or an ArchiveInvalidation-related issue:
First, ArchiveInvalidation referred to a specific line in Oblivion.ini that no longer exists in Skyrim.ini. This may seem like pedantry, but it's not, as I'll get to.
Archive Invalidation, or the problem that ArchiveInvalidation attempted to fix, was the inability in certain circumstances to have loose files override, primarily,
native BSA files that came with Oblivion. And, more importantly, when you say "the problem with ArchiveInvalidation" was not so much that what was intended by AI wasn't what we wanted, it was that
the implementation of ArchiveInvalidation was buggy and did not actually take effect. Setting
ArchiveInvalidation=1 in Oblivion.ini was supposed to fix issues relating to how BSAs were loaded, but did not do so, hence the need for redirection, AII, and so on.
Importantly, some sort of ArchiveInvalidation fix was necessary to run any sort of replacer mod in Oblivion. When you say ArchiveInvalidation to me, this is what you mean.
Skyrim has no such problems.
The native BSA files that are installed with Skyrim are registered in Skyrim.ini, and therefore lowest on the priority tree. Loose files
do overwrite them, as intended by replacement authors. ArchiveInvalidation, which was necessary in Oblivion to use any replacer mod, is
not necessary to use with Skyrim.
Moreover, there is no "ArchiveInvalidation" per se in Skyrim, and therefore no buggy implementation thereof.
Hence, the difference.
The only time that there is a problem is when two separate unregistered (read: mod-added) BSAs contain the same file. This is a condition that didn't come up in Oblivion (or, at least, was not worried about beyond the usual ArchiveInvalidation issues), because all BSAs were treated the same and because ArchiveInvalidation didn't work anyway. Hence, this is a completely separate issue.
If it weren't for Steam Works, this issue would probably not even be that serious; BSAs weren't used that often by mod authors, and had their own problems anyway.
But now Steam Works mandates the use of BSAs, so we have to deal with this new issue with how BSAs are loaded. Obviously, both ArchiveInvalidation and this issue have to do with how BSAs are loaded, but the issues plaguing each game, the circumstances in which there are problems, and the solutions to be employed are all very distinct. Conflating them makes nothing easier to understand, because people's responses will have to be different.
Moreover, the general sentiment that "Bethesda lied to us about ArchiveInvalidation being unnecessary" is fundamentally flawed. That statement was effectively true. Bethesda has always been at least somewhat short-sighted when it comes to mods: they think in terms of one mod modding the game, not in inter-mod interaction. They are aware of this tendency in general, I believe (I don't know if any of them are yet aware of this particular issue), and the statement is just one more example of that. ArchiveInvalidation, and ArchiveInvalidation fixes, were necessary in Oblivion to use replacers. They are not necessary to use in Skyrim for replacers, only for conflicting replacers. Which wouldn't have even been a very big deal, except for Steam Works.
Ultimately, ArchiveInvalidation refers to a bug-riddled intended feature in Oblivion. This issue is not a feature that has bugs, but rather a poorly-designed but well-functioning feature. We don't need them to fix bugs, we need them to change their design.
I don't have a particularly good name for this feature. I hope that Bethesda will fix it shortly, so we won't have to
have a name for it.