- Primary combat focus is on first person, third person being optional.
- No mandatory factions. Players may join existing factions/guilds but are not obligated to do so.
- World free to explore without boundaries, gear or level checks.
- Grouping is optional.
- No instanced dungeons. No channels/phasing.
The player will not play the 'main hero' as is usual in other MMO's. His fate will be intertwined with the Elder Scrolls, but only as a potential which may or may not be recognized untill it's fulfilled by the player himself, by his choice and his ability to determine his own fate.
Players may dissappear into the masses, joining existing factions (ala empire vs stormcloaks in Skyrim), or they can make a name for themselves by taking control or otherwise taking advantage of the freedom the game provides.
Think EVE Online here, where no player is treated as a hero from the getgo by the game, or at any other point. If a player wants to be a hero or villain, they have to show that. There is no fixed quest line to follow, no fixed grinding path to get there.
Gameplay is balanced around smallscale combat in the initial stages. PvP is allowed everywhere. Large scale PvP may happen around territorial conquests or guild/faction battles.
The death penalty is very hard to accomplish - by necessity, an MMO requires a respawning mechanic for players. How to accomplish this in TES? Well, one option would be to not call it death, but unconsciousness. Your 'deaths' may be recounted by an increasing number of scars, signifying the amount of times one has been knocked down. Permadeath may be an option for players in high positions or certain situations to get around the lack of immersion at no one being able to "die".
Modding will be impossible to do in an MMO, at least not the kind people have been getting used to. The best the devs can do here is invite modders and players around for suggestions and practical examples, keeping up a constant dialogue with the community aswell as keeping an eye on what's popular in the singleplayer games (other than balance changes).
However, villages and towns may be player regulated per server, allowing for a certain degree of customization by a larger group of players. Adding homes (ala EQ2) or other buildings, or defenses against rivaling factions or players is an option. Certain areas may be designated for players to claim and build on in certain prefab ways, striking a compromise between no modding and full modding which is still regulated by the devs and GM's (think SWG/EVE).
A single server design will be impossible for any kind of land-based game to maintain unless the landmass is sufficiently large to hold everyone. However, this creates problems in starting areas and hubs which may need ot be instanced by necessity. A segmented community may be best here, implementing a happy medium between a single server environment and small servers with caps of ~100 people in any one place. This entirely depends on the budget and time available for designing the world. Most likely a compromise will have to be struck here to keep the worlds small.
This might however be a good thing as players can identify with their community much more, given the freeform factions and landscape customization later on. This can be done in such a way that the lore in general can be maintained and content can be developed singularly rather than adapting to different servers, where the happy medium between full and no modding hits a sweet spot for both players and developers.
In fact, one such MMO was already in the works a long time ago. However, it was marred by difficulties from an inexperienced and very small development team and a fraudulent publisher (Dark & Light). The proof of concept already exists, albeit executed poorly. Given time i would have hoped Zenimax/Bethesda to achieve something similar with TESO, though it seems they already went the DaoC/WoW clone route.
I really wonder what the initial meetings were about and how exactly the current version came to be.