Correct, the argument of first person is not entirely accurate. It's skill based gameplay that people are really arguing for. Having to aim to hit targets and actually physically hit people with melee strikes like the single player games. Not being able to just click on someone and then behind the scenes math deciding all the results.
Pretty much this. Two key aspects of the series have been believable NPC's that have loads of *NON-COMBAT* AI, so they seem more lifelike instead of just standing around waiting on you to kill them or give you a quest, and first person immersive (if occasionally clunky) combat. Really, if they made the combat very engaging *in spite* of being third person, and had this crazy AI going on like say, Skyrim or Oblivion, it would be loads more compelling. Regrettably the GI article said basically, "We can't possibly have NPC's wander around and stuff, whatever would Billy the guy with 20 IQ do if he had to play at night while townspeople are asleep". Then they ruled out active blocking and stuff as anything more than a gimmick by saying, "Oh, you could block stuff, but you'd still take damage, you just might block a secondary effect or something."
Almost everything they said rubbed me the wrong way. I've always thought, if only someone would make the AAA sandbox we've always wanted, since freakin Daggerfall; it would be Bethesda to do it. Instead the whole interview reeks of derivative "me-too" WoW killers that crop up all the dang time.
Don't even get me started on "Heroic Dungeons, Raids, and Battlegrounds", all confirmed features that don't belong in a TES MMO at all. Confirmed features that guarantee the end-game is focused on grinding gear to compete in the 3-faction-PvP. Yeah, that totally sounds TES to me, gear grinding new crap every 3 months so I can pwn the newbs with my mad hotkey pressing skills.