I think that describing this as a fantasy game (ie part of the fantasy genre) is a bit of a stretch. The thing that struck me when I first played the game was how it felt almost exactly like the previous games, just transplanted into a superficially fantasy setting.
Obviously characters in fantasy settings do go on dates, but making it almost exactly the same as a modern date didn't aid my suspension of disbelief. Why choose a fantasy setting if you're not going to make greater use of the genre's conventions? As it is, the main thing that lets you know that this is a fantasy game are the Oblivion screenshots.
Chaotic should be applauded for having produced however many games it is now, and they're not bad games by any means. But I do think there's still a lot of room for improvement.