I wish you could tell who your aiming at from a distance. For example... when I'm in the mountains and am seeking out bandits on the main road, I wish that when my cross-hair is over the target it identified who it is such as "Bandit" or "Guard". There has been many a times when I thought it was a bandit I was shooting at, but turned out to be a guard instead. Also, I wish the navigation bar at the top showed when enemy's are in the area BEFORE they see you.

These are definitely my biggest gripes.

I actually quite like this. It feels more "real" (not saying that realism is the main aim of ES scrolls, but in terms of enjoying the game). There's a group of people up ahead - are they friends or foes? Do I take a risk and shoot first, or do I let them see me? Adds to the excitement.

I see your point... but how are you supposed to be a sneaky assassin when you have to run up to someone to see who they are?

Well ya can save game / load game each time, and shot them with high damage.

Or you can train and learn Detect Life spell, along with Sneak skill, to get close to them at which point your eyes can recognize the colors and your brain can remember how to deal with 'em. Mix it up a bit!

Well be clever about this. Try firing an arrow close to them and see how they react to it. If they arm themselves you've got enemies.