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Yes, there's a lot of loading, and it takes a long time to do so (less if you have a lot of memory, I assume). You indeed have to load upon entering/leaving most buildings, but the loading times for buildings are generally (relatively) short.
IMO, the bugs aren't as bad as some people claim. It's not more buggy than many other games I've played (Morrowind was worse, for example). There are some really annoying bugs, but the recent update apparently fixed many of them. Apart from that boat thing crashing the game, I have yet to find a bug that ruins the game.
As for buying it... I dunno; I enjoy the game, but it depends on the price, and how much you enjoy this type of game.
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