hat's the point of roleplaying - actually doing the actions and making the decisions. The decisions are there for me to make. The consequences are there. I'm not imagining them. They are there. I just don't need the game constantly reminding me that "ZOMG'Z! I'M THE NICEST HERO EVAR!!!"
And you're missing the obvious. Many actions would have pronunced consequences that would be reflected far more in the world than what they are. Okay, so you know that you helped some shady people capture some Redguard from Whiterun, but why arne't anyone wondering where the heck she went? She was employed at that inn, was she not? How do you react when your employee disappears? Not at all?
What if you kill some NPCs daughter, go to prinson, and then come back a few weeks later? Would you forgive someone for randomly butchering your daughter, if they went to prison for a few weeks or even a few months? Personally I'd want to kill such a person but a Skyrim NPC just happily asks "hey, might I tempt you with a potion, person who killed my daughter?" which makes no sense at all. How do you RP in that situation?
The other point is - how can a game script reactions to events where the player has the opportunity to go "off script" and do something that'd be nearly impossible for the devs and the game to anticipate?
By grouping situations through equivalence classes, which is largely the same way you test code. If this means nothing to you then you don't have the scripting / programming knowledge to claim it is impossible (or even difficult).
And by the way, all I've got in the art of programming are three semesters worth of computer science classes and a tiny bit of programming experience. If I can think up a solution, you can be damn sure the gamesas crew could as well.