Hell, I've complained a lot about shallowness, which I think is particularly evident in the quests, guilds, and overall storytelling. Can't comment on books, as I'm not an avid in-game reader. When you say "something was inhibiting their (devs) muscle flexing", what do you mean?
When they Made arena, its original concept was you being apart of a team going across the continent fighting other Teams in Arenas.
Then it became a conspiracy, with a unkown agent being guided by a spirit to uncover a ploy of Jagar tharn who sent Daedric assassins to end him. across the continent they stride diving the deepest darkest most dangerous dungeons. coming to end in a climatic battle involving fire pits, teleportation and what would be one of the most powerful artifacts in Tamriel
-- of course its not nearly as epic as it sounds but it beats their original concept imo--
then from nothing Came Daggerfall, and with their brainstorming erected politicks interplay, factions rivalry and one of the most indepth rpgs of its time conceptually (to me) as the game was buggy as hell lol but AMBITIOUS AND DOESN'T FRAID OF ANYTHING.
Then FROM ONE LINE in the pocket guide of the Empire Morrowind that had NO references, NO guides and NO examples of its existence prior to the Games appearance, they birth one of the more lauded RPG's for its time as well and DID NOT SKIP OUT on the story juice EVEN though it was advancing in Graphicks and Lesser RPG mechanicks.
Then Comes oblivion, Its local that it takes place, HAS MORE DESCRIPTION than -ANY OTHER LOCATION- ever in TES in the pocketguides to le Empires AND IT CRUMBLES, WHY? next to nothing of the descriptions about Cyrodils people, the Imperial City, Factions, Society and Events come to life in the game, NEXT TO NONE, and it had more examples than any other province....and compounding on the fact that it having a described in stone setting to allow for a Story to bear Fruit, its story was one of the most lackluster ever presented in TES (IMO).
Then Comes Skyrim, Skyrim, written about in books aplenty, a society well documented and there for the AGES, is also lacking. why is this, the setting is there. a province up and about centuries before the empire, a province that stood tall during the Alyieds and Dwemer....a Province Steed in history enough to drown you 600 times over, CRUMPLES as well? WHY.
/Mah Opinion
if you don't get my point, then let me make it clear, Why did Beth do awesome with nothing, and do nothing with Awesome?