umm texture resolution? they also toned down lighting, shadows, reflections (not even sure if any made it in), AA, among other things.
the only cut i see out of oblivion is the shadows toned down, not cut but toned down. again would you much rather wait another year to get shadows from skeletons and books? not me.
give it a year and you will start seeing games exceed your expectations for graphics, for now enjoy the graphics only possible on a $1000+ PC or the 360
to be honest im more upset then before now seeing the video, what really irks me is how awkward it was to see a shadow from an npc dispear when it died
and what the fuck shadows gone made all the brick walls look like shit.....thats even worse