While I prefer the gritty style artistically in most cases, a more vibrant style makes for a better fantastical representation of a fantasy world. Skyrim often seems too mundane exactly because of the color palette and generally realistic style, so I don't get the feeling I'm actually exploring an alien world. In that line, I totally agree with the OP and think the TESO artstyle is, in the truest sense, fantastic.
Only thing I don't like so far are the armor designs. Just doesn't say "TES" to me.
I agree, with both points. Art style is brilliant. Its slightly different from traditional ES games but I think it would portray all the provinces very well, especially as much of the graphics/ art style from previous was designed for the specific provinces. This is a good balance, it looks very magical and vibrant.
The armour though, by contrast, looks poor. I am not sure if its because we have yet to see the higher tier armour sets yet but from what I have seen, they could do a lot better with the model designs, make them more interesting/ striking... not really sure
