But the textures look worse than they used to, without even changing the graphics. The things looked current generation quality before, but now some things look like they belong in a game from 10 years ago (blurry, harder to identify edges). Can mods also decrease the detail of some things (even unintentionally)?
Maybe I misunderstood. Are you saying this wasn't an issue, but now it is? Because for me, I still see some of those blocky looking terrible lo-res images in Skyrim. Removing the texture pack I use now brings all of them back. The design of the game was to improve the aesthetics and realism of the overall looks and effects (like waterfalls for example), outside of really zooming in on objects up close; they did a good job on this. But the vanilla game still uses those ugly lo-res images like those used in Oblivion when viewed closely. There's just no way they could have made all of these environmental effects work without using ultra lo-res images and then expect them to work on the consoles. The console version was (sadly) ported over to PC.
Are you, per chance, using the vanilla settings and also using your graphics card settings at the same time?