Nice watch

You can be evil in the game, or more accurately... good and evil are not binary opposites in ESO, any more than in any TES game. But you can make choices that are more or less selfish or altruistic, for instance.

What you probably CAN'T do is work for Molag Bal. Remember, he stole your soul at the beginning of the game. He's not on your side.

Plenty of other ways to be evil though

Of course you can be evil, you have two options , join the Daggerfall Covenant or the Aldmeri Dominion.

It was confirmed long time ago.. ESO has multi choice quests (just like in SWTOR, choices with meanings) you can burn city for example or not. Also Justice System is coming after launch. Something new is that NPCs actually reacts differently on what kind of choices you make, for example, if you dont burn a city, when you go to that city, NPCs actually cheers at you.

I really hope there is ACTUAL daedra worship.....I want to worship the CRAP outta sanguine. lol

Something I picked up from the video was there was a faction war going on before all the chains from the sky business. So does this mean there could be 'instances' during battles between factions where they have to team up and take on hell? Or am I over thinking?

You have three enemies, but the only enemy the three factions have in common is Molag Bal.