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Hey guys. I've never played Arena, and this is my first time posting here. But does anyone know why the map of Tamriel has changed so much since Arena? And also, why did the citizens go from using words such as "thee" and "thou" in Arena to saying "Hi!" in Oblivion?

Honestly it hasn't changed THAT much. For the length of the series, I really expected more changes. The landmass is more or less the same. Now, a lot of cities did in fact change, they added more to Cyrodil in Oblivion (In Arena, only place in Cyrodil you can visit is the imperial city), and with all the other nations they changed a lot of the cities around.

Really, since Arena was their first game, it makes a lot of sense that plenty of changes happened between it and the later games. A lot of the enemies in Arena were changed down the line, including the orcs becoming playable, and the pantheon of gods and daedra as we know them now didn't exist in Arena. As for the language issue, this is for the same reason as the change to the gods and monsters. Arena seemed to be made to emulate D&D in a lot of ways, like a lot of old (and newer) RPGs have done, and part of the attempt to give it that mideival flair was to have them talk in old english.

With any game series, it's usually a good idea to take the things put there in the first game with a grain of salt. Things will be referenced in later games, but for the most part the first game in a series is where they're still trying out what they want in the game and what they do not.

Let's look at the ES series from a production stand-point.
Back then, Arena was pointed towards the old school RPG'ers. The people who had 20 sided die on their key chain, a nice computer for the time, and an interest in this type of medievalish setting. So, 'thou', 'art', 'thee', etc. are essential.
It really hadn't degraded until Morrowind, where things in much more detailed perspective. Taking a leap from Daggerfall's random landscapes. So, with this added detail in Morrowind and a wider audience, Morrowind was a big change. But the old elements were still somewhat in effects. The area had their own expletives (s'wit! n'wah!), to greetings (sera).

By Oblivion, an ambitious 360 game, was intended for a much more larger audience. The old school RPG'ers were essentially put in the background, so new gamers could come in. With added detail, and degraded dialog, you had the change.