I don't know how to explain this, but it is something I always liked about certain games.
As a roleplayer, I want my character to look the way I want to without being undergeared because you don't fancy the ''demonic and godly looking high level gear''.
Basicly, my idea is a cosmetic slot for ESO. If you played LOTRO you might understand what I mean here.
That way you are still allowed to look the way you want to look like, without having to worry about being underpowered. It greatly improves roleplaying opportunities IMO.
Feel free to share your honest opinion about this.
EDIT: Removed the part about clothing, that was just a bad idea. But consider this.
For example, a heavy armored player could use other heavy armor as cosmetic equipment.
That way a player in Daedric armor could use Steel armor for the aesthetics. But not robes or light/medium armor.
Does that mean that armored players can't wear clothing? Ofcourse not, they can use it when they are roleplaying in a city outside of battle or something. But in battle that is not a viable option.