Fast travel the same way as morrowind, with taxis.
Map should show quest destination, not as a pin-pointer, but as just a general medium-large region high-lighted
I think that there are two things behind the fast travel concept that are often merged while they should not :
1/ Fast gaming travel, which correspond to Oblivion one and which is a gameplay and storytelling feature aiming at keeping the rythm of the adventure.
2/ Fast means of transportation that have your character move faster from point A to point B than a walk, which were the ones of MW.
Now, I think both should cohabitate. The first is an assumption that your character can move to a known location with its current mean of transportation (feet of horse). I think some limits should be set to such system so that everything, everywhere, anytime may not be so easilly "fast travelable". I once proposed something about this like being able to activiate fast travel only when you find a direction on the road side. It may also be activable only if your character has a good quality map with both your current location and your destination marked on it. To finish, as in DF, you may have options like trying to take the faster path or the safer one, sleep in inns or camp. Such option could activate a random encounter system (attack by bandit on the road side or by a group of wolves in your camp). If a kind of survival/navigation skill or an optionnal compass were added, there may even be a risk of getting lost : the fast travel is switched off, and you have no clue about your position. Up to you to find a significant landmark, a road or a village to continue your trip. Anyway, such trip may take more time if you move by foot than if you ride a horse or take the second kind of fast travel :
This second system could cohabitate with the universal fast travel if it means :
1/ A faster trip, which should be something really interesting if some quests were timed. If someone has been captured by a band of ogres, the longuer you delay the quest, the higher the risk of the prisonner to be eaten. Or if an important NPC wants a messenger to inform another NPC of a great danger, it should be better that this second NPC get the message before the problem occurs.
2/ The hability to go to places you have not yet explored. If some limitations are set to the other fast travel as having a good map, knowing the place or finding a direction, longuer trips to fully new locations may require the services of skilled guides.
3/ A safer trip, with much less risks of being attacked. this should be important if it becomes possible at last to play non-fighting characters (I consider fireball throwers mages as fighting characters, not scholars!).
The principle of such system is to allow players to keep the rythm of the storytelling by removing some long and fastidious trips if they want, while not making it an exploit to avoid dangers of travels.