So I read an article in this month's Wired about a company called Narrative Science that has technology that can write news articles using an Artificial Intelligence:

http://www.wired.com/gadgetlab/2012/04/can-an-algorithm-write-a-better-news-story-than-a-human-reporter/

I can't help but think something like this has an application to a game like Skyrim. The idea would be that the character's actions could be inserted into the lore of the game. Think of a Thief that gains enough notoriety that the townspeople place wanted posters throughout the town. The player could read the poster and see a synopsis of his/her misdeeds. The content would not be simply static text but generated based on events in the game. Another application would be that after the player dies, his/her progeny could later read a book about the history and deeds of his ancestors.

I have other ideas for this Bethesda...

I definitely not against the things you thought of. It would be cool to read a book on a previous character or read my wanted poster, generatwd witb my crimes and bounty. It could go much deeper but in theory it sounds great!

"A million monkeys with a million typewriters for a million years...."