Thats an example of "You just can't win." If you make a game linear, people complain. If you make a game open, people complain. If you make a middle ground, people call it linear.
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Yeah, more or less. It just brings up the point of player preferences and development priorities. My preference is in interactive storytelling. Oblivion fails in hooking me into the story, while FFX fails in actual game interactivity. Which is why, I guess, Obsidian/Bioware bring up the least awkward compromise in the current industry. Which doesn't mean there isn't lots of room for major improvement.