Last time i played moving thE cursor was fairly sluggish and now it appears to feel more like a precise first person shooter. Just me?

you can change the touch sensitivity in the options, so maybe it reset in the last patch?

1.5 reset all my controls and settings after patching, so its probably happened to others also. It would certainly account for the op's post.

Good, I'm not the only one.
I kinda liked it being sluggish, gave me a bit more control. What is the default sensitivity?

(as in, how many ticks from zero sensitivity to the default?)
I put it between 3-5.

Oblivion on PS3 is extremely sluggish. I didn't notice until I played Skyrim, and it made Oblivion a bit painful to play. Fallout 3 isn't as bad, though.