I can just imagine it now - basically the same, but with a fresh coat of 'modern' paint.
The towns could all have their own signature 'look' rather than having all the buildings look the same, the NPCs could actually be modelled rather than the ridiculously fast sprites that existed in the original, speech could be included and the music improved, and the space between towns could be spiced up with low-poly trees and bushes rather than the bizarre sprites of the original.
Gameplay could be improved by having the map displayed in the upper screen (or your status, equipment and items, quest list, notebook), proper lighting in dungeons, touch-screen sword swinging, a few gameplay upgrades in the tone of Skyrim (for example more visible sneaking and skill progress).
Daggerfall would be far too much for Bethesda to recreate to full Skyrim standard, so a remake on PC or the main consoles wouldn't make a lot of sense considering those games have the newer Elder Scrolls games anyhow - but the 3DS is an untapped market that's begging for something like this. Nobody expects Skyrim to be ported to it (nobody's that silly I assume) so most would be quite happy with a game that's clearly more geared for shorter bursts of play like a Daggerfall remake of this nature.
My palms are getting sweaty just thinking about it
