So here is what I have done or am planning on doing:
*You can pick up dead bodies. They go into a sack in your inventory and when you drop the sack, the dead body drops out on the floor. This is necessary because it is impossible to move a body out of a cell by dragging it. When you activate a door it is dropped and left behind. This feature is done. Limited to one body at a time. The body weighs 200.
*Corpses will have a decomposition effect over time. I will start with a shader making them look blue/pale/dead. I've done this already too in my Unholy Darkness mod with a shader for bodies you drain dry of blood, so it will be easy to do this to corpses for this mod. After a week or so I will add another shader that looks nastier. After that I will probably swap their race to a draugr half rotted looking corpse, and then the final stage will be a skeleton.
*You will be able to bury the dead. So if you want to get rid of a body you can stick them in a container like a coffin container in a tomb, or perhaps I will make a "warriors funeral" like a certain guild member gets when he dies where you can burn the body on a big pile of sticks, so if your follower dies you can give them a proper burial.
*If people die in town their bodies will be taken to the temple for a day and then buried in a tomb on the next day. Dead bodies in the wild will probably be stripped of valuables in a day or so, and left to rot.
Am I missing anything?
