I think the reason why they could fit so much into the game (it's not nearly as big as Arena or Daggerfall, but it's still pretty huge, at least for a 2006 game) is because they gave the art department a lesser budget than whoever the hell came up with the ideas and whoever executed the ideas.
But yeah, that's a modded screen (really pretty though) and the game looks shitty. Still a decent game, though.
But yeah, that's a modded screen (really pretty though) and the game looks shitty. Still a decent game, though.