IIRC, there was a POC mod that was released sometime after Oblivion's release. It used the cellar/basement asset set to create a pseudo-random dungeon. This was done using scripts, and involved manually linking different static tiles together in a feasible order. In any case, the result was a generic looking maze (which was the goal). The idea was dropped as linking the different tilesets didn't seem like it would yield anything usable. In essence, the number of combinations that algorithm yielded was pretty low and every other seed looked similar to its older sibling.