The timeline sounds reasonable overall. While I wouldn't say Oblivion "butchered" the lore, there are a number of issues with it. For just one example, the Imperial Cult is bland compared to what I've heard Daggerfall was like -- now you have a single model of Gothic cathedral that's supposed to suffice for all the Nine, instead of having a Dibellan temple, for one.
Yes, for my many cross game RPs, its gone from, at 40 years, "Turn-The-Page will be dead" to, at 200 years, "everyone but Idredhel the surly magelord is dead". I guess we could do some interesting time travel stories. A fish truly out of water.
As for the lore issues, it will be irritating to miss out on the awesomeness that may or may not happen after the fall of the Septims, as well as a complete change to some places and politics. Though Maiq had better still be in it.
It just feels like they're skipping the interesting stuff for another "OMG TEH UBERZ" story. I guess we'll have to see how it pans out.
Oh, and this will mean either Grappa wins an internet for breaking the info years early, or he's a lying scum who will never be allowed to show his face here again. :ahhh: We have two months to wait.