clearly in this video if (you watch all the way thru) youll realize hes levitating ... if thats true then ill be in heaven on elderscrolls online , is he levitating or is that just the camera for the playing area and coppied by a dev as a video presentation?
heres the vid --> http://www.youtube.com/watch?v=wNo4PpMQu7g&feature=plcp

This isn't levitation. It is a camera. Probably a function they use to edit and look through the game to check things out. Levitation would be great but it would certainly need to be balanced. No levitating mages casting fireballs at hapless melee fighters I would guess. Or archers usijg it to get to a unreadhable position. Unless levitation was balanced some other way. I still see it being abused no matter what.

My bet is that they will say Molag Bal's work has caused unforseen effects on magic. Such as levitation not working.

i see

I think limited levitation could make it into the game with out breaking anything.

They are trying to figure out a way to allow players to scale walls. They could make it so thieves and warriors climb the walls but mages get to levitate over them.

that would be interesting ...