The original did have a lot of varied and interesting quest ideas, and some of the graphics still hold up now - dawn breaking over the mountains and reflecting off a lake looks even better in higher resolutions. The problem is more that there's about a billion identikit dungeons which only contain level-appropriate loot, so you never find anything really exciting, and of course the leveling system is completely busted so every fight is a slog everywhere you go. Felt so limited compared to Morrowind, too - MW might have been a completely broken sandbox, but at least it was open enough to break.
I don't really feel that the main problem with Oblivion is how it looks.
To be fair, they sent out the email when they first did it. Just their internet connection is a bit slow.