Example on classes, the Dragon Knight, he has an ability that pulls enemies towards him ( Ala scorpions kunai from mortal kombat, or a death knights deathgrip from WoW ) that class at the same time could use any item or armor they so choose.
That would make sense. You'd still want to choose a class with abilities that go well with your playstyle but ultimately it's open ended.
Speaking of, do you know anywhere they've talked about what classes have been revealed?
Seems like there's a consensus. Overall I have to say it doesn't sound bad for an MMORPG. You have to have some structure to differentiate the player characters for the sake of making PvP and group questing worthwhile but it's good to know there will still be a good deal of TES freedom involved in character building too.