It also has stone grinders for the wheat, so ovens for bread should have been added somewhere.

Also, the all-wood or mostly wood buildings of Norseman heat up easily and provide okay insulation. Try heating up a medieval stone castle and you'll have to have a logging company backing you up. In fact, the tapestries hung in these castles served not only as decoration, but a form of insulation (of course not an effective one).

the dynamic lighting and shadows make everything around the firepits in breezehome look horrible on ps3.

Medieval period homes in Scandinavia were actually built with a fire pit in the center of the home... just like in Skyrim.

You can bake bread in a Dutch Oven over an open fire.

here in Lebanon people used to use (some still have it) something called "Kanon" (which is a fire pit basically) only its made from brass and is mobile cause you only need it in winter, its used to sustain a coal pit actually not an open flame, but the old homes had really high ceilings and massive rooms so smoke was not an issue and coal produces so little anyways.

I like the breezhome firepit but dislike how deep it is. I was hoping to have a pile of skulls in it but found out that the top of the wood is not an actual surface but just an image covering a deep hole

You can cook anything in a Dutch Oven over or near or in a fire. Well, in some coals more than in the fire. There used to be a show on PBS where a guy cooked entire meals in Dutch Ovens. He played a Camp Cook as his hook.

And there I learned something I didn't know!