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im currently playing oblivion on x360, been playing it like crazy lately, and i havent had any problems with load times at all. People dont realize is apparently the game actually does cache to the HDD if you have one. It can get fragmented apparently but the fix is to clear the catch (by holding the A buttion while the game is booting). Barely have any load times unless your going into a shop or new city, and usually isnt more then couple of seconds for a shop or 5-10 seconds for big city.

Yes, im addicted to it as well, already upwards of 130 hours, and havent progress the story at all yet, haha.