I just watched the town of Riverwood take on a dragon, and Alvor unfortunately met his fate. What's even sadder is his little girl and wife ran past his lifeless body to go stare at the dragon skeletals they saw earlier and say some pre-made comment.
ut if you go and talk to the wife after, she says things like "we had a daughter, she wanted to be a black smith like alvor... i'll miss him so much" and other things, so yeah, not sure about dorthy and what she says
One day just for fun I am going into the middle of Whiterun and casting fully charged Storm Call to just see the people run around like crazy and see what they do.
Had a similar thing happen in Dawnstar. After the dragon had be dealt with, I found the blacksmith's wife dead in the street, with other citizens walking by the body like it wasn't even there.
Went back a few times and the body was still lying there, with the remaining citizens just ignoring it and going about their business.
Never saw the blacksmith again or found his body.
Definitely a few clean-up routines missing here and there.
Like whats been said, its hard to mimic humans with AI. Its probably never going to happen, there are going to be some bugs. But Skyrim has pretty decent AI most of the time, and when it messes up its just hilarious.
Weird, when it happened to me, Alvor's wife died. Alvor came over, said something, fell into depression and went home. I tried to talk to him but he wouldn't talk to me.