In the update after v5.0, Deadly Reflex´s horse combat makes a comback in 1st person. This movie gives a preview.
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This video shows the basic concept how horse combat in Oblivion will look and feel like for Deadly Reflex users.
What´s new and ready in this video is the 1st person horse combat, the amount of control and depth it brings; and how the new it detection takes full advantage of this freedom, allowing delicate hits using three different attacks in any direction. Also the 3rd person leg-clipping has been removed.
Don´t mind the rest, how hit affects, what the damage is, all the above things will contribute, but in the video the hit effect and and damage are just placeholders.