I actually like this idea, although I don't expect it to be added to Skyrim. The next TES game, perhaps?

While I'm not entirely sure how you'd level up a racial perk tree (maybe it wouldn't work like the rest of the skills. Every five levels you gain one point to put into a racial perk, perhaps?), but it sounds interesting none the less. For Altmer you could have ones that provide a large boost to your magicka pool, make it increase faster and ones that improve the effects of various schools of magic. Khajiit would probably gain ones that soften footsteps, allow night vision and the like. I can imagine them having a high level one that gives them detect life. Khajiit don't use their noses enough. ^^

I completely agree. There should be more spells to damage enemies as well. Like Telekinesis. Take that novelty, and be able to push and pull people. Stop arrows, even! Pure mages with high Magicka pools should be able to lift enemies into the air and toss them like dolls.

Or a spell to make a copy of yourself, like Sigdis Gaulderson, maybe even have them be weak and cast spells or do weak attacks like the Wispmothers.

Short range teleporting like Orchendor would be neat too.

Or maybe one that drains your stamina to restore Magicka, like Equilibrium but on a less lethal (and less recovering) scale.

I completely agree. There should be more spells to damage enemies as well. Like Telekinesis. Take that novelty, and be able to push and pull people. Stop arrows, even! Pure mages with high Magicka pools should be able to lift enemies into the air and toss them like dolls.

How about a spell where you can make somone combust?

You'd blast somone but then there would be no fire ball the target would just ignite, of course it wouldn't be damaging as a normal fire attack but it would work like a poisin.

Id like magic creation and the return of arena and with completely unique gear to win/purchase from the arena as a price like gear with enchantments that is not on any other gear in the game and cant be disenchanted at the table.

I guess I have to iterate the obligatory spears plea. Its not so much spears (though I am a diehard spear fan), it's the general lack of melee variety. As far as melee goes it seems to be "approach enemy and hack n slash until some one is dead or near dead, retreat, heal, rinse, repeat." regardless of actual style of melee. When so much of the game, in one way or another, revolves around neutralizing hostiles you would expect combat to be a little more nuanced than attack, attack, or block. Or don't be a warrior. The suggestion "add spears" is almost pointless until combat mechanics are expanded.
Weather. yeah. If it's cold, it should affect gameplay. If its windy, it should seem colder (hypothermia effects? Fatigue loss? HP drain? slow? numbness / clumsiness?). If its windy, it should affect trajectories (arrows, dragons, etc). Getting wet and cold shouldn't be something to shrug about.
More flyers? We finally get flying creatures back, but only dragons? What happened to the cliff racers that supposedly gave dragons so much trouble historically?
I'd like to see poison effects: delerium, nasea, vomiting, hallucination, fatigue, sleep, whatever makes sense.
It's hard for me to accept killing a man in full plate without destroying his armor, or my sword. I wouldn't mind locational damage either. More spell effects and/or spellmaking is almost so obvious that its hardly worth mentioning.
The arena of MW and OB were nice considering circumstance. I liked the progressive combatants, but I'd also like the option of just somewhat random NPCs or even the option to setup your own matches (# of opponents, challange aquaintances, NPCs or creatures, to the death or just for entertainment, etc.) Instead of the "arena as a quest line" why not "the arena as and arcade mode" -- just a place for a quick skirmish or a testing ground.

Perks are garbage IMHO. I know that will rile up alot of people, but it runs completely counter to the reason I play TES as an RPG -- you get better at what you do. While we're at it, toss 'leveling up' out too.

I think that Skyrim should be co-op. Its a large map and there are so many things to be discovered so why not have a friend tag along. Although it may conflict with the story a bit with the whole Dovakiin thing but the second player could be a person that trained with the greybeards so they could go around with one or two shouts of their choosing. If one dies the other could give a revive potion or something instead of reverting to last save? I loved the arena in oblivion. I liked to gamble and fight in it i really hope that it comes to Skyrim. Maybe it could be in a DLC to rebuild Helgen?