Oblivion was static? Are you saying that morrowind wasnt static..(or atleast less than oblivion?)..
Morrowind was static because the NPCs never moved much. Having said that, otherwise the world was full of life, you could always expect to find something happening somewhere, with an encounter with a quest giving naked nord just waiting for you around the bend
Oblivion was static because nothing happened. The Radiant Ai gave the NPCs a floor turtle schedule, but they never actually achieved anything. Worse than that, they weren't even able to give you quests on the fly, with a very small number of NPCs being the exception to the rule.
Not to mention that Oblivion never actually got harder, unless you screwed up your leveling. Whereas in Morrowind...
Oh yeah. And unique item placement. There was actually a reason to go around the world and see what was what. OB didn't really have that. First dungeon was GOOD, then there were a couple of others worth exploring, but for the most part the dungeons were drab and boring and not worth visiting.