Does it sort of make anyone feel a little awkward when you need to speak to someone who is sleeping, you talk to them and they get up without hesitance, speaking to as normal as they get up, should their not be a little extra 'What is it? I was having a great dream' or 'Yawn' What? What do want (in sleepy voice)' and then they should not say any normal dialouge until you speak to them first, then they can give their normal answers...

What do you guys think?

I agree with you.
I love to wake up Aela in middle of the night, and ask her to cook something for me.
"Yes love?"
"I can! Here, blahblahblah..."
If you don't get at least one brick in your face, it isn't right :/ People who are nice and polite to you after you woke them up at 2am, make this game less realistic then dragons who get killed by bears.

Try this for a light sleeper: I was in Kodlak's room at 3 am, and everyone's sleeping. I picked up a tunic (don't even remember why, now), then tossed it back on the table, and just as I turn around, Farkas has woken up, sprinted out of his room, and asks me if he could have it. A light sleeper plus falmer hearing! Amazing.

Wow, people in your game sleep?, I can break into a house gone midnight and still find everyone inside awake and shouting for me to leave.