RPGs don't seem right for a system with short battery life, but it'll get them.
I find that battery life doesn't seem to hinder RPG much at all. With the exception of perhaps the overall quality of the RPG releases.
As for Oblivion, it'll probably be like the Oblivion Cell Phone games. I mean, not the same in gameplay, but it'll be a totally different game based off the Oblivion storyline. Like the Cell Phone game was a totally different type of game, I'd expect the PSP version to have its own kind of gameplay. The initial main story and history, and particular named items/characters, being the main thing that relates it to the console/PC versions.
This is a toss-up. If it weren't for the rare game like Age of Empires, I'd be even more skeptical. I also believed that it's just a mistake putting an Age of game on a portable, but the way they handled it was a pleasant and unexpected surprise. This is possible because Microsoft has found inventive ways to actually take a Real Time strategy game to the turn-based realm, before. Their board games actually are very surprisingly well-made, and shock you with a system. Though at first, they were a little on the complex side (not a great learning curve). There's probably a little of that practice that was used to make the DS Age of Empires what it was.