
Scripting, as in actual script writing that is also used to trigger journal entries and special events has little to do with Radiant AI in Oblivion, which in Oblivion is just a fancy name for NPC schedules.
All the Radiant AI in Oblivion is handled through specific schedules telling NPCs what kind of action to do (eating/sleeping/wandering), what specific object (or object type, like a chair or food item) to use for the action if any, at what hours of the day to do this, and in what cell.
http://i.imgur.com/N7zq5.jpg
Maybe their confidence/responsibility rating allows them to choose whether to pick up that sword you dropped, but the dueling thing sounds more like a context sensitive scripted action than a completely random one based on disposition.
I'm not disagreeing, just clarifying. Eat, sleep, and wander are goals (also known as packages), and the pursuit of goals is the heart of the AI. The setting and scheduling the goals is done through the Radiant AI system. As far as I can tell, NPCs are constantly pursuing goals, even when they are just standing around staring at walls.
We're not talking about Radiant Story (that's still in), we're talking about Radiant AI. Two different things buddy.
And from what i've heard they've pulled an Oblivion with the AI. Kinda svcks really.
Although the OP says "radiant ai", the examples he gives are two of the first-published examples of Radiant Story in action. They appear in the very first Skyrim preview. An NPC's AI does not lead him to pick up your dropped weapon and return it, or to fight with another NPC for your dropped weapon, or to challenge you to a duel. Instead, Radiant Story makes NPCs do these things, and it only makes them do so if your character's history provides Radiant Story the required inputs.
I am unaware of any official statement ascribing the occurrence of any such events to Radiant AI.