The crazy thing about all this pandering to the masses is that if they really went to town and made a game as deep as Daggerfall etc but with todays technology and improved on the gameplay even more they would surely have a winner that would gain accolades from all over and give them the reputation they deserve.
It is sad to see such a company fall the lowest common denominator like they have been doing.
I think however, that they are looking for a good balance and perhaps when they find it, they will be able to build around it and bring some of the depth of gameplay back and still make it appealing to the masses.
I think the future of TES games, if they want to please more people, is to go the way that some modders for Oblivion have done with their overhauls, start making the game modular where you can turn on and off various aspects of the game to suit your gamestyle, I think the hardcoe mode for Fallout: NV is a step in that direction and I hope they expand on it.
Casual gamers can choose to have their easily done game (not everyone has hours to spend playing every day but still want to get the enjoyment of finishing the game) and hardcoe guys can choose to have their deep and lengthy game and no one has to be left out.