My apologies for not seeing that it was already out.
I have Oblivion on the Xbox 360, and though it does say "loading area" occasionally it lasts for no more than a second usually. Take a look at the footage of Lair for the PS3 if you haven't already. That involves dragonflight in full high definition graphics (which means airship travel should be possible on the PS3 and Xbox 360 at least). In fact, Square COULD have kept overworld airship travel the same on the PS2 because the PS1 was able to do it. They were just more interested in making the in-game graphics better, and decided to exclude it.
I don't see what's wrong with the occasional "loading area" message popping up, as long as it remains as short a time as it does on Oblivion (at least for me it's for no more than a split second unless the 360 decides to have a hissy fit).






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