Honestly from the video's I've seen, with skyrim and the HD texture pack and other very popular graphical enhancement mods this is looking rather fail. I've been playing every elder scrolls game including expansions since morrowind but this really leaves a bad taste in my mouth. There's also the fact that some gameplay elements in mmo's compared to the elder scrolls are like oil and water in difference. Also, this likely won't be moddable since it is an mmo.
I can literally see this failing harder than SWTOR. I have all the love in the world for the elder scrolls, but this online thing.... after watching several videos of this game in action it just leaves a really bad taste in my mouth. I honestly hope this gets canceled before the elder scrolls falls off its wagon. Nobody thought diablo could fail, it did. Nobody saw CoD failing, it did. There are very few giant franchise titles left that still hold some dignity and I don't see any in this mmo whatsoever.
If you want to add multiplayer co-operative functionality to a standard elder scrolls game then that could potentially work very well if done correctly. But mixing this mmo gameplay and you're literally asking for a nuclear disaster. It's like walking into the depths of chernobyl on purpose.