Ocato is a mediocrity from what I've heard over the years (not able to play "Oblivion" yet). I think the devs will introduce someone new in a future TES game, and it won't be the player character.
I don't see how they'll avoid copying the CoC's story arc in that future game, but hopefully they'll manage to come up with a different slant.
It could be the Empire is finished, however, and we're heading for fragmentation into separate, squabbling provinces.
I would prefer it that way, every province seperate. The Imperials have held the empire under an iron fist for too long. Sure, they promoted free speech and what not, but if you still didn't want to associate with them, one is an enemy of the state and legions are sent in.
So, I will end by saying, The Adoring Fan should be Emperor for a little bit. That little kid, sitting on a throne with a lopsided crown on and a dumb smile on his face, wouldn't that knock your socks off?