That would make a great mod...
Yes it would, especially if perhaps a certain Dunmer wizard were involved. Perhaps hanging out in some remote location (say the Nirn portal to Battlespire) trying to get the portal reactivated. Say that with the players help (Convincing Ocato to hand over the last runes) they finally lock on to the battlespire ruins and teleport there. Instantly swarmed by many many scamps which that Dunmer Mage has you handle while he attempts to locate the greater welkyind stone (or other mythic power source) which turns on the lights. Finding that in addition to the Scamps and Spider deadra which still inhabit the Citadel, you have a mad lich (that poor guy the battlespire hero abandoned on level 1). Defeating the little girl scamp leader gains you control of the scamps and a peon resource to do grunt work. Same with Spider King (its irony, usually its a spider queen)
Exiting the ruins shows you have to gather they pylon gems while Fyrr directs the scamps to make structural repairs. You venture int the ruins of the Town from I think Level 5 or 6 which have been demolished by the crash of the battlespire. Defeating multiple bosses to obtain the pylon gems you return to the battlespire where you are told to return to Nirn to do some busy work while the deadra repair the Spires.
Then you return to fend off an all out attack by Dagon and in the grand finale Fyrr gets the spires powered up and plummets to Nirn to Squash Sheogoraths 3 headed Island.
But you know thats only if I thought long and hard about it. Would be a cool mod (If I could ever find my BS hintbook which has the levels all mapped out.)
But yeah, the archetecture statics is mostly there you just have to poke around for it and find what works where. Stuff should be all in Vanilia Oblivion, just get creative. (except for the seducers and their Deadric Crescents which will have to be obtained from the mods already out).
Ive toyed with this idea over the last 2 years but I cant script or do quests and thats needed in a mod like this.