Morrowind had underwater combat
So will Dawnguard, apparently.
In the sea of Ghosts? Far too cold for Lamia.
How would you know, exactly? I don't think there's currently much lore about them right now. But they would definitely make great enemies, though they would probably have to give them some kind of tops to wear in order to avoid generating unwanted controversy.
Thats not realistic though and I dont want anything that isnt realism.
And what, giant flying lizards in a frozen land shouting fire and ice on people and running around shooting lightning from the palms of your hands is realistic? The real world must be a lot more interesting (and dangerous) than I thought.

They do make the game world "realistic" through many other means, though, like the art direction and how the player interacts with the world, etc. But a big part of fantasy is that it at least partially goes
against what is realistic, as opposed to fully embracing realism, if that makes sense.