The Witcher blows TES out of the water for me. The storytelling and characters are far more superior in TW and TW2 than any other recent RPG I've played.
I haven't gotten the TW2, yet, TW was indeed pretty awesome, warts and all. But, it was very different. If you are primarily concerned with story and NPCs, there will never be a TES game for you. The way to play a TES game is to get a couple levels under your belt, and
go that way. What way? Who knows. Who cares. There's a forest with scary things, some tombs, some ruins, some raiders, some rebels, some evil cultists, some loot, and maybe even a few puzzles and traps. NPCs and quests are there, and have value, but they are secondary.
TW, OTOH, was a linear narrative masterpiece. Flawed in execution in some ways, but it really doesn't have another worthy game to compare it to, since everything else built remotely like it is Japanese, and as culturally Eastern as TW is Western (I, too, loved the morality).