The faction would be a series of highish-level quests aimed at late to end game characters. To emphasis this, the Knights 'guild' location will likely be some where remote and dangerous ... such as a Keep guarding somewhere in the Ashlands. I may also have it so you have to have a certain 'reputation' to join and become a knight, as they wont just except any pauper. Other quest givers would be random individuals who would appear all throughout Vvardenfal, giving one the opportunity to take up knightly deeds.
This idea mostly came out of a desire to hopefully do abit more indepth questing for Jeremy McGuinn's Knights of Tamriel armour (The quests typically seemed to all be clustered around Seyda Neen) and later by reading about the unused faction in the CS. Also the idea to add a faction directly aimed at a challenging late game quest line, where the various quests to do tends to grow abit slim.
So if anyones interested and I can get Jeremy's permission I may give this mod a go? Or has this been already done?