I have an idea for an arena type thing.
Maybe have a few arenas (standard arena, woodland area).
Have one team start on one side, and another team start on the other.
Then either have a standard deathmatch, or maybe have objectives (capture the flag).
SNIP
I know, the classes aren't the best, but they were just off the top of my head, just use those as a starting point.
Your Multiplayer character will be totally separate from your Single player Character.
As you rank up in a Multiplayer class, you unlock better armor and weapons (starting from leather, iron, and novice spells and working your way up) for that class (maybe even for the class that's connected to it).
Going to your inventory will be disabled (or in real time, so the game isn't constantly paused), so all multi-weapon people (Assassins, Mages) will have weapons and spells hotkeyed automatically, but you can change it whenever you want outside or inside of the game.
Maybe even have a "restore health" potion.
I think that if they did do a multilayer arena/battle game type this is how they should do it with a few modifications,
1) Classes are customizable but non combat type skills would be removed, mercantile has no place in the arena.
2) By winning battles you get money for your separate online character, the money is used to level up your skills from trainers in a market type of area between games and buy better equipment, potions, spells, repairs etc. from vendors.
3) Like it says in number 2 you dont level up your skills but purchase them instead. However you would rank up the more you play, the better you are the faster you rank or something like that. certain equipment could only be bought once you have the proper rank, ranks could also be extended to Combat, Magic, and Stealth so you couldn't end up with one maxed out character.
4) something should be implmented so that super high ranked characters arent matched against each low leveled people, even if the guy in full daedric at rank 50 svcks hes gonna beat some dude in rusty iron at level 1 even if the level 1 is amazing.