What would be awesome , is if you can invite your friend 's character into "your" game that you host , just for fun , not for for competitive stuffs or battles , but just for hanging around with a friend in Skyrim .... like a companion but a human one ...
But yeah , a competitive arena combat mode would svck because of the various ways you can exploit the game
Co-op would be magnificent. This would not.
Essentially the only multiplayer aspect TES fans don't have a problem with (for the most part) is an arena. But as posted above, that wouldn't work, especially since I have gotten my sword to do 226 damage per hit without cheating, just using the options that the game gives me, and not even really trying to do that. With master level enchanting, you can make it so your spells cost nothing to cast. Ever see a Redguard in full Daedric Armor (armor rating of just over 500) dual wielding Wall of Flames with no magicka cost? Anyways, co-op wouldn't work either, and I'm tired of explaining it. Simplest terms, multiplayer turns 300 hour single player into 30 hour multiplayer. It no work.