Yeah, oblivion must have mods in order to be considered even remotely playable.
You will need some level scaling abolisher and some mod adding extra items to the levelled lists (to offset fucking lack of diversity) - many mods combine both functionalities.
You will need some combat overhaul, like Deadly Reflex, because combat in vanilla is atrocious and people considering it to be improvement over Morrowind's clunky clusterfuck are inbred morons.
You will need a mod to somehow handle the fact that unique quest rewards are scaled to your level.
Lastly, you will need any and all unofficial patches you can get your hands on.
Some head depotatifier would also be handy.
Ah, one more thing - you need to remember to click through dialogues as fast as possible - you have a quest compass to show you where to go, a journal and popups to tell you what to do and any exposure to oblivious dialogues *will* result in permanent SAN hit.
Satisfying these requirements, oblivious may be a decent mindless slaughter simulator for those days when you feel angry and need to vent, but too drained to play anything decent.
Also, try to stay in SI, rather than Cyrodiil, at least it's visually interesting and somewhat non-generic.