It would fit below Skyrim's volcanic hot pools area near the Morrowind border. That's sort of an extension of Red Mountain volcano I think.
Well, Red Mountain is actually an Island - there's a bit water channel between that island and more land, before we reach the Skyrim border. But it's certainly possible.
Edit: Tamriel map with highlighted game areas: It SHOULD be accurate afaict: http://www.emfoxburr.com/wp-content/uploads/1322255826945.jpg
You're wrong. Skyrim is partly a volcanic area. It even has a landscape area literally called "volcanic tundra". The hot springs in such areas are there because magma and lava heats them. Dwemer uses heat as a source of power.
That's true, but overall, it's still a much wetter land than Vvanderfell. And hotsprings (and the visible chemical/calcarous deposits) indicate the presence of a large water body or a significant underground stream. So the dwemer might be drawing power via pipes, or just drawing hot water for the steam power, rather than directly digging to lava. An example of this is in
.
A ruin with a deep excavation leading to glimpses of lava would make sense in that area, though.
And I agree with you on the bronze, aged look. It's like they had completely different architects in Skyrim. Not a wholly bad thing, but jarring, and it would be nice to see classic dwemer architecture.
Even though I think the Dwemer tileset is by far the worst tileset I (re)made for Sheogorad I may eventually convert it to Skyrim. My number one priority are improved versions of the Daedric and Velothi tilesets though. But I guess with some improvements and the dynamic shadows available in Skyrim the Dwemer tileset could look ok as well if converted.
Problem right now is that there is no way to add collision to the models since Skyrim's collision type is different from previous games (including Fallout). Until someone figures out how to export Skyrim collision there is no way to convert the models. Other than that conversion would be very easy, already made a quick test with the Daedric tileset (http://s66.photobucket.com/albums/h271/Phittte/DaedricSkyrim2.jpg).
That Daedric looks brilliant. I can't wait to see it in-game. Will it be as a replacement for the (relatively few) daedric temples? Or do you plan to offer it for those that want to add Morrowind-style Daedric shrines?