No it doesn't play like oblivion at all, but it feels like oblivion if that makes any sense at all. The skills are used in a way different manner than this one for sure, and it isn't quite a FPS either. I mean if your small arms skill sucks hardcore no matter how good you are at aiming with a mouse your character will miss some shots.
The VATS system makes for some awesome cinematic combat. I need to record some video with FRAPS, because I have already made some damn impressive long shots with the hunting rifle and VATS.
The game is worth it for sure. I can tell that by my first time playing. It does have that 'have to travel on foot' feel Oblivion gave which is one thing I am kind of not liking. I like the 1 and 2 world map how you just traveled in a line like the Indiana Jones traveling montage scenes.
Oh well, that is a minor issue for me, because once you travel somewhere once you can fast travel there and back.