http://elderscrollsonline.com/en/news/post/2013/01/18/ask-us-anything-daggerfall-covenant-part-2
Major takeaways:
-The Reachmen will be present in-game, allied with Molag Bal and his minions. No idea how Bal relates, if at all, to the gods of the Witchmen or why they would view the Planemeld as a good thing (unless it's just ZOS assuming that all Daedra worshippers have the same goals and values).
-This is actually the second Daggerfall Covenant, the first being a NATO-esque alliance of mutual security among the lords of the Illiac Bay following an invasion of High Rock by the Reachmen, culminating in a decisive victory for the Bretons at the gates of Daggerfall (which is a nice touch, because it establishes precedent for a united High Rock in the face of external threats).
-There will be plenty of racist Bretons and Redguards toward the Orsimer. Which, I assume, means one token quest where you have to stop a crazed Breton who's been murdering Orcs.
-The Yokudan gods will be present and accounted for. No magical transition to Divines-worship just in time for us to visit? Huzzah!
-There will be more (emphasis theirs) books in TESO than in any previous TES game. No word yet on how many of them will be worthy additions to the series, and how many will be dismissed as "transcription errors" by the fanbase (spoiler alert: ALL OF THEM).
-I was disappointed that they didn't address the biggest lore concern of all, though: the Redguards' http://images.wikia.com/elderscrolls/images/c/ce/Daggerfall_Covenant.jpg
DISCUSS!