DS doesn't have the specs to handle a straight port of Daggerfall.
It wouldn't be a straight port.... more of a re-creation
Check out what Lucius is doing in the DaggerXL thread.
If he can manage something like that, I imagine he could also strip the game down/ wrangle it in to access the game's assets with a different engine suitable to the DS.
If you want a proof of concept check out the game Fatal Labyrinth for the DS. (yes, the game is more enclosed w/ some open areas but it works as a proof of game mechanics etc...)