I am so glad degrading armour/weapons is gone, I hated having to take 3 sets of weapons with me in Oblivion with me for when they died in the middle of a fight. I wouldn't have minded if it was a longer-term thing - if the weapons/armour got rustier and rustier but over the span of like 20 real hours not half an hour. So that if you went into a dungeon, you knew you were entering with rusty armour, instead of entering with brand new shiny stuff barely out of the packet and coming out with completely broken useless stuff! Also until your armourer skill was good enough you'd have to take a million repair hammers with you to survive just one dungeon, and they weighed/costed heaps.
With the smithing and stuff, it would have been cool if you could strip dead birds of their feathers, and give fletching your own arrows a go. And maybe it would be tedious, but maybe after an arrow has been shot and reused multiple times, one of its fletches might fall off and you'd have to refletch it

Anyway I have only just begun the main quest here but I have a strong feeling it won't be nearly as good as Morrowind's. In Morrowind it takes until 3/4 of the way through the main quest to officially understand who/what you were [not counting your own personal guesses and book-reading] and what your place in history was. At the moment I don't see what else the Greybeards could tell me that would be really interesting.