Oblivion realms, to me, were always an untapped source of housing options. A little sliver or shard of Oblivion that could be customized to your will. Bright meadows, city scapes, dremora spire guards, etc.
What if each defeat of Molag Bal's forces gave you a sliver of his power, so small a piece by a Daedric Lords standards to be unnoticable. Like a trimming of a fingernail, how it was once a part but is still insignificant. But for a mortal, just a moment of such power can allow us to create our own shards of Oblivion.
So players are able to close Dark Anchors and fight daedra. Take the fight from Coldharbor back into Molag Bal's own keep. And each of these defeats earns them a bit of daedric energy, that allows the player to 'purchase' their own plane of existence.
At first, this plan is a simple 'teleport to' option with the inside of a hut in it. But as you collect more and more power, more and more options exist. You can expand the inside of this house and reshape it, turning it into a cave, a mansion, a keep, etc. And then you can reshape the outside, into meadows or mountains or rivers or streams, even into more fanciful plains at higher costs.
Would be nice, and wouldn't clutter up the game world.