I've been playing Oblivion for around a year with a gap in the middle. I first completed all the guild questlines and expansions on my old 360 console and am working to do the same on my new one. I try and complete as many side quests and collect as many items as possible; sometimes simply to dress up my character!
I tend to use equipment for looks over bonuses, because quite simply, the game isnt that hard. I always prefer 2handed weapons for looks and reach but I also love using staves.