Many of your ideas are horrible.
"Player created shops! Also houses shouldn’t be instanced as this I find destroys the “feel” to the game. Imagine having your house full of rares and your friends coming into your house for a meeting. (Maybe poison the food and steel there stuff for the thrill, unless they kill you first)" - That can ruin a lot of the economy and thieving and killing of the owners will just be rediculous.
"Open world PVP really adds to the thrill of the game, imagine taking the risk to go out of the city and mine in an area full of rare minerals and lots of PVP players hunting you for those minerals, it really makes your heart race." - This is horrible, you can basically never go outside, because everyone will be after you. That will not be very TES like at all.
Sorry but .. seriously...
You look like the kind of players that wants to win at all cost, no challenge whatsoever.
A lot of games has free pvp and you can very well go outside of a city (actually, i never play a MMORPG if it doesn't have free PVP) you just need to watch out for people in the same way you watch out for strong monsters.
And ... you would really invite to your house a bunch of people that poison your food or kill you?
Just a little bit of common sense and that would not be a problem.