I could pretty much just go right in front of dudes and they wouldn't see me.

Hmm... depends on the difficulty you've got it set at. The default difficulty I'd say is easier than Morrowind (IIRC it's right in the middle of the bar), whereas the bar maxed out... way harder than Morrowind. I don't recall if Morrowind had adjustable difficulty, though.
When is it due in?