Real eyesight distance is ~4km (2.5miles) in good weather
Problem wasn't the draw distance, but actual size of the province Oblivion's draw distance was rather unrealistic, if you ask me - being able to see from one end of the province to the other not only makes absolutely no sense to a humble industrialized-hell New Jersey resident such as myself, but it kind of ruined the sense of wonder to be had in exploration.
