I think a mod that handles vital character deaths like Morrowind would bring an interesting challenge to the game. I would remove all essential flags from every character but replace give each essential character a flag that would show some form of the "Doomed World" message from morrowind. Essential characters.. they bug me. It really messes up my TGM + Attack Castle venting sessions.

This will probably be created very soon as it was with Oblivion. Although a problem that I foresee with it is dragons owning essential npcs before you even get to them.

I thought dragons spawn around the PC. Buy yeah, that still could be an issue. We'll see.

I'm not entirely sure yet how dragons spawn, but I have continuously seen them attacking towns or people off in the distance that I am just running up to.