Oblivion is probably the best looking game out right now. There seems to be a trend of hiding up ugly textures with lots of blur effects, but Obby has a good mix of textures and shaders.
Graphics is one of the few strong points the game has (without mods). Luckily, one of those strong points is the great modding community. I really need to install this game again.
Wait...FEW? I thought oblivion had more then just a few...But ill agree with you on Graphics and Modding Community.