I'm playing it for the first time right now and while it is definitely a good game its nowhere near as good as Oblivion. Only people blinded by nostalgia would think its a better game. You should replay Oblivion, the better game, instead.
I've been playing it the past week on the 360 and its still as fun as it was when I played long ago. There are times where I hate the combat system though and wish I had Oblivions(mainly due to Gaenor the wood elf in Tribunal) though.
Only other problems is long load times when reloading and big dip in framerate when a lot of action is going on, but it has aged well for me.