This thread is excellent.
I have been playing Daggerfall for the first time for a couple of weeks and nothing else because I'm addicted. Bad.
I'm a person who found Morrowind quite enjoyable thanks to galsiah's character development mod and a few others, coupled with the beautiful alien atmosphere they pulled through in that game. Seriously, the first thing that bothered me even before all the other more important things that should've bothered me when the prince of lies was pimping Oblibion with all the fake features was how they managed to do such a terrible, bland, high fantasy art direction after friggin' Morrowind. And people liked what they've gone for in Morrowind. Some of you guys might not remember but they even had bad stolen concept art from other games. How lame is that? There was even an epic thread about this on the Codex back then when this got "discovered". I'm not knowledgeable too much about the inner workings of Bethesda but I think they might have fired/replaced the art team that made Morrowind along with many others from the other departments. Jesus Christ...
Exploration.
This is the key to understanding TES games.
What sucks you in Morrowind is Exploration. What DEVOURS you completely in Daggerfall is again, Exploration. It is essentially going places, finding phat lewt, pwning things and then getting stronger, Going to deeper dungeons, finding morbidly obese loot, pwning bigger things and by *knowing* the teachings of sucking off the right factions, getting even more stronger...
Everyone who likes rpg games likes Exploration to some extent in one form or another. The sandbox style exploration of TES games can be even more appealing but as we saw from Oblibion it is pretty easy to screw up that formula.
The Exploration has to include challenge. Like REAL challenge. When you face an Ancient Vampire in Castle Necromoghan at level 3 for some random Harpy hunting quest with your shiny new Dwarven Claymore you just bought from the Odd Blades at Daggerfall City you think you can take on the world with brings you to an important realization. I can get pwned. Anywhere, anytime, especially at places with names like CASTLE NECROMOGHAN. This brings excitement to the Exploration because you don't know what to expect, you know you're taking risks when you decide to go some place named Castle Buttrape. In Oblibion, you knew exactly what to expect, everything. From the challenge to even the goddamn loot.
It would also help not to make the game world to be explored with the size of Disneyland Paris with a similar juvenile, uninteresting, bland content with all the dungeons similar, small and sterile, devoid of any real challenge, again, like Disneyland.
But the kids like Disneyland, and kids buy a lot of games.
Now what would have been really awesome, even more so than just Daggerfall with enriched content, better art direction and other improvements would be to take Daggerfall, and copulate it with Mount&Blade. Keep the Daggerfall sandbox play, huge gameworld, exploration, TES crpg character development "galsiah's cd mod" style and combine it with a properly modified M&B style medieval combat simulation with spells that is both realistic and crazy fun. With outdoor battles including majestic brown horse riding!!!
And the "outdoor" is just an aesthetic term. You could include the risk of getting "bandit" encounters you can duke it out on horseback when traveling places with varying challenges scaled to the REGION flavored with the according fluff of that region. If you're "recklessly" traveling through Troll Country camping it out on the way instead of using inns you get surprise visits from bands of romantic troll gentlemen looking for an opportunity for some "surprise sex" with some yiffy khajiiti adventurer in their lands for example etc. etc.
Or there could be "outdoor" dungeons along with the other indoor dungeons which would be basically dungeon like confined areas with large spaces and set loot, small structures, altars, battlements, set enemies and events etc. you are allowed and encouraged to fight on horseback. They could be large bandit camps, a huge battlefield with battlements and palisades, or even the combined outdoor section part of a large Necromancer's Castle with a courtyard/walls/moat filled with werewolves etc. you have to fight through and then climb OR have the gates open up somehow ( C&C ) and reach the indoor section of the real dungeon inside the castle in which you have to pwn/deceive/cut a deal with the powerful necromancer part of an important questline. The King of Worms awaits thee!!! But you're gonna go through hell to get five inches near him.
Couple all the TES freeform sandbox fun elements with some of Mount&Blade's like running trade caravans, invading places, getting fiefdoms, pwning people and making them your slaves/bitches and selling them. With the game world actually twice the size of Great Britain you will have fun with this game for an eternity even after completing the EXCELLENT main and the important questlines that employ all the innovative elements of the superb sandbox gameplay...
Now tell me how this game would not sell, even to the goddamn kiddies.