Just checked some clips for it, it was still early in development when I was checking it out but it doesn't seem to have gone forward much since, shame because there are some really nice ideas in it. I think oblivion online is going to cause a lot of disappointment, went in to some of the details of mmo networking and it doesn't seem possible to make oblivion gameplay work over a network
Part of the problem is the obsession over graphics, Planetside has proven that it is actually possible to get some awesome FPS combat going on and make it an MMO but you have to be willing to sacrifice polygon count so everything runs smoothly, this is why people are still playing the old games like Counter-Strike Source because the developers have done just enough to make the game look reasonable and then worked on the gameplay only.
With how powerful computers are now you could easily make a fast paced MMO with no silly grinding if you have a polygon count that the source engine uses but no one is willing at the moment to do it, I can't wait until I get into 3D and networking with lots of players so I can experiment
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The problem isn't how powerful a computer is, but the internet truly is the problem.
The lag is what breaks every single fun on a Action Paced MMO, like Tera, Vindictus all the others. You're not going to let things happen on client-side, otherwise hackers will spawn everywhere, like on F2P FPS games.