I'm fine with Havok again, as long as two things happen: 1) make it possible to set things down in a predictable manner. I want to decorate the tables and shelves of my house, not the floor. And 2) Use a combination of prerecorded death animations and ragdoll. They figured this out in Shivering Isles, when
Spoiler Thadon dies, he clutches his heart and reaches out for help before he collapses. It really adds a human touch to the scene.
So bring back Morrowind's death animations, but have them go limp afterward, because being able to move the bodies (or at the very least, not have them clipping halfway through the wall or floating in midair because of the pixel they were standing on when they died) is a really great touch (my favorite moment-- after I "tamed" the unicorn, I fast traveled to Cloud Ruler Temple, where the unicorn went on a rampage because of the two people sparring in the courtyard. I had to kill it, but I didn't want its rotting corpse spoiling the vista, so I spent five minutes dragging the damn thing over to the wall and throwing it over
).
I know this is possible, Demon Souls already uses it to great effect.
EDIT: @Betrayer of Humanity-- Oh god, the enchanted weapon physics led to some of the best moments in that game. When I killed Ruma and stole her fire staff, I couldn't stop laughing blasting those poor Mythic Dawn fools halfway to the moon