Radiosity
Writiosity
I wouldn't be surprised if there was a waste of a settlement like Winterhold, might as well left that area blank.Compared to the settlements of Skyrim the towns of Oblivion seems like the scale of the places you'd think should be in Skyrim.
I wouldn't be surprised if all the settlements were wastes, propably to emphasize the loneliness in the wastes...
And to emphasise the SETTLEMENT BUILDING MINIGAME of course. Why create actual settlements when you can just throw a few tools together and let the player do your job?