Essentially you'd have these choices:
To get from Anvil to Imperial City, you could choose from these:
Manually travel there, with your feet or your mount at no cost, unless you run into trouble that you cannot run away from.
Get a boat that gets you there for 200 gold. You wont get into any trouble on the way.
Fast Travel there recklessly for no gold, but you'll likely run into trouble on the way. You might arrive there at night when the city gates are closed and you need to wait until morning, climb the city walls or levitate over them. The bandits you ran into also chipped away 1/4th of your health and some durability from your gear.
Fast travel there cautiously for 50 gold. You'll end up at your destination in good condition. The trip will take longer in-game time, because you tried to avoid fights (although not completely). You also had to sleep in Inn on your way there.
The interface would also allow you to skip using an Inn, skip using methods of transportation etc for less cost but more chance to run into danger - almost just like in Daggerfall. You could also travel to locations you didn't know that were there, mostly cities and towns if you pay for your trip, then you don't have to be the guide or know the way.
Pretty much how I'd like the fast travel set up, with a few caveats:
* Your travel could be interrupted by encounters- Some you could one-click run away from, losing time and possibly not getting away after all ... Some would be optional, like travelling merchants. Others you could script and plan in the CS to happen, so that they aren't truly "random" if the game requires it. Like, meeting an outlaw you saw on a "wanted" poster in the last town, for example.
* You would have the option to pick up info and stuff on the way: Rumours, locations, plant gathering results, ...
* Most quests would have a time limit, some a rather strict one too, so you can't always waste time going the slow-and-safe route.
* The world should be big enough so that fast travel would be actually useful. Oblivion wasn't, Morrowind was only because of the nearly impassable landscape inbetween.