SilasBarta comments on Memetic Hazards in Videogames - Less Wrong
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Is that how people normally react in real life? I would think people tend to be apathetic bystanders, or might think you were picking up something of your own.
If someone creates a real life simulator where you can repeatedly practice your crimes and learn what the actual responses would be ... God help us all.
(I mean God in the secular sense.)
An interesting article on stealing bicycles here.
In Oblivion, the settlements you are in are village-sized. They would be close-knit communities in which you are a stranger. Also, we're not talking about picking up something off a street (picking flowers or herbs for instance) was OK, because outdoor plants generally weren't flagged as owned. Things you might want to pick up were generally indoors and often within sight of the person who owned them.