With the kind of mod I am currently working with it would be beneficial to get back to working with an esm style format. What I would do is convert the main esp into an esm then whenever I wanted to make changes I would make esps. If I liked the changes I would then merge the esp into the esm... It was a really good way to work on things and it also allows people to make mods of my mod without any trouble...

Anyone know if this possible right now for Skyrim?

I've seen people talking about it (I'll keep poking around, maybe I'll find where), so I know it's possible. I do recall, however, that you cannot upload esm's to the Steam Workshop - yet another of its arbitrary limitations. You can, of course, upload them to the Nexus.

Open up Wyre Bash -> right-click the future esm file -> select ESMify -> rename the .esp extension to .esm -> you are done

I use an esm for v1.1 of my Lydia Orc mod, because it's th only way to have npc skin colour display correctly converted from an ESP with tesvsnip.

Oh great :/
Why do they have such strange limitations??