I was driven to voice my worries because Elder Scrolls is an awesome game and I've been waiting for this MMO for many years. The one failing I've always felt playing ES was the lack of people to talk to; an MMO is what ES should have been all along!
I love the RP and carfting in ES, I was dissapointed on hearing that PvP is a major part of the online version. It seems that someone in PR and research thinks that because WoW had PvP all MMO's need it, which is a shame. There are enough MMO's about that ES could have easily thrived with out PvP or with a token offering; Bethesda will find that player v player balance is a very different thing to player verses monster.
When I heard about the Mega Server (not an new idea but should be a staple of all MMOs now) I was relieved because I agree that servers are an annoying and archiac mechanic that serve to drive friends apart. Factions also stop people forming new friendships in and out of game. It seems however that the dream will have to wait, there will most likely still be friends I can't game with.
So... this isn't a rant, I understand commerical imperatives and the need to make this work at all costs. Some things have to be sacrificed but I still hope this will be a fun game to play for the next decade.
If we need to have the three factions then I propose you let a character have a War or Peace tag. If you have a Peace tag you can get access to all three factions but are not allowed to PvP at all. The RP idea is like the real world, not all people in a country want war. Let some of us try and forge bonds of peace between the factions; after all this is the only civilised way forward. The beauty of this idea is that you can run with it and have quests around the goal of a peaceful resolution to the war.
Then if you PvP you get a permanent (or a duration measured in months) faction hit and you become one of the mindless many that thirst after the blood of other sentients.
You could then have a very broad sort for the phase characters get put on, War or Peace.
Cheers