M'aiq the liar. Is the best. Good ol, ageless M'aiq the liar who exists in morrowind, oblivion, and skyrim. Not a reborn character, the same character. The same immortal character wandering throughout the ages.
Regarding your opening argument ajwilli, I had heard the same argument given against morrowind and oblivion as well. That morrowinds NPC were all just lore billboards and oblivions NPC being little more than filler objects. I think skyrim NPC are all pretty bland though. Can't really tell them apart you know? the only characters that are really different visually are those directly tied to the main quest lines.
I always liked the books in elder scrolls games, A dance in fire being my personal favorite.