By a more indepth character interaction, I mean actually adding random(and not random) scenarios that unfold dynamically that involve your character and his or her actions. Skyrim touches on this slightly with random spawns and semi random encounters such as looters and bandits tell you to hand over your gold or to pay a "tax" or something, but it would be nice if this was expanded upon to make a more dynamic experience.
Next feature would be a higher level of dynamic story integraction with advanced dialogue. By this I mean having a higher level of morale ramification added to the story almost akin to Mass Effect where your choices impact peoples opinions toward you. I would actually like to see a type of measurement of this so I know how my actions are affecting my morale standing. The Knights of the Old Republic has a light side-darkside meter and Mass Effect has a Paragon-Renegade meter. If Elder Scroll incorporated something like this it would make for a more dynamic story and add more immersion and realism to the story and the settings. It would also provide a possible alternative motive for side quests. Instead of fetch quests and such, there could be other types of quests that reward you by either raising or lowering your moral standing. This would also add more depth to the storyline by allowing you to see how your character progresses through his or her actions and what people think of your actions. Your standing could also influence certain stats and have bonuses/perks that go with them ie vampire being evil allows more efficiency with certain skills they use and whatnot.
Branching off that, I come to more indepth/advanced dialogue and more detailed followers. Instead of having hundreds of followers that are nearly identical in the way they act and with no real difference besides occasional weapon/spell usage, Bethesda should have only a handful(12 ish) highly detailed followers of different race and gender, each having their own backstory and connection to the story. This means that each character would be tied into the story in some way and would change their opinion toward you based on your actions and how you treat then. This would provide the ultimate level of character progression of both your character and the characters involved in the story directly. This would be immersion at its finest.
I am not trying to suggest that Elder Scrolls needs to be totally changed or anything because I love its free roam aspects and its wonderful lore, I just believe some more integration, character involvement and progression would be and excellent and innovative way to expand the series and delve deeper into the lore.
Tell me what you all think
, I would love to hear feedback on this(both positive and negative)