Well obviously it wouldn't have that renaissance feel that we've all seen before and which I hated about Oblivion. People are always looking for a way to raise spirits in dark times. It wouldn't even be limited to just holiday festivals. What about celebrating around a slain dragon in the town, or perhaps the rebel faction/pro Empire winning a victory? These can be meshed with other festivals to create atmosphere. Just because some people may know that Alduin is approaching doesn't mean that they're gonna shut themselves inside with despair. It's a morale thing. They might as well take out woodcutting and other job skills because people know that doom is upon them, so they would quit the jobs since that's a low matter at hand. Doesn't work that way.
I believe in your case that it should start happening at a certain point in the main quest, like after you visit High Hrogthar and the people of Skyrim have some sort of confirmation that you are indeed the Dovahkiin, giving them a shred of hope.
I believe in your case that it should start happening at a certain point in the main quest, like after you visit High Hrogthar and the people of Skyrim have some sort of confirmation that you are indeed the Dovahkiin, giving them a shred of hope.
Celebrating a slain dragon, now that seems like a proper Nord thing to do. Display its head in the town square and have free mead for all. This isn't a celebration that would happen all the time, but it isn't something you'd miss either. I support this sort of thing to be sure. If they are to celebrate anything, it should be in lines with traditional Norse values, where killing a great beast is an achievement worth celebrating. I simply don't want to see the return of things like flower day and dancing day. Something like a fire festival may be good in my books, depending on how it's handled (thinking of the terrible WoW Fire Festival...)