What I'm wondering is will it/can it snow everywhere and anywhere? In the trailer we see the lush, green pine forest and the colorful fall forest. Both don't have any snow at all. Is that something that will be static and snow is off limits in certain areas like that or can it snow their too?
That probably depends on whether we get snow in those areas or not. I'd assume that dynamic snow works everywhere snow can fall in the game, but that doesn't necessarily mean every location will have snowfall. I just hope that it would be easy to make snow accumulate on an object properly if a modder were to put an object never used by default in locations where snow can fall in such a place.
Also, like someone else mentioned what about chests and important items outside? They would have to be protected so snowfall doesn't builf up and cover them.
We're not sure about that, but from what I've gathered, it seems likely that snow doesn't change the 3D geometry of the environment, but rather that it's just a 2D shader applied to objects and terrain, so an object out in the snow will take on the appearance of being snowy, but we probably won't see huge snow drifts dynamically build up and possibly bury things over time, so the chest might look snowy, but it wouldn't stop you from looting it. This theory seems to be supported by the screenshots we've seen so far as I don't think I see any snow actually piling on anything, it looks like it's just a snowy looking texture applied to objects, this doesn't prove anything, of course, but it certainly seems to support the notion I mentioned.
In any case, I think we can assume that snow flakes won't actually pile up dynamically using real time physics. Instead, the game probably takes into account how much it's snowing as well as properties of objects that determine how much snow should accumulate in each place, and applies a snow effect to them based on this. Possibly, the falling of snow will also take into account things like wind allowing it to fall in different directions depending on where the wind is blowing and how strong it is, and hopefully, it won't fall through solid objects anymore. I'm not sure if we'll see snow getting kicked up by things like footsteps and such, but I'd imagine that wouldn't be too hard to do using particle affects, and footprints in snow could also be simulated using decals. The dynamic snow sounds impressive and I'm sure it will be a pretty nice effect when the game is finished, but we must remember that Bethesda does not have magic. They're not going to be able to do anything that wouldn't be possible with current hardware.