For the sake of saving time, here's a quote of what I said in response to the almost exact same question a minute ago in another very similar poll:
FOR THE LOVE OF AZURA! This isn't goddamned Fable or some other lesser RPG. In case you haven't noticed, you wield 1,000 year old weaponry in TES universe. Dwemer weaponry and armor are a perfect example of this. And I better not need to explain why it's a great example. I'm not righting a damned essay here. Yes, Skyrim will have windmills, but that will probably be the only example of technological advancement in the game. TES is three-pronged: Magic, Combat, and Stealth. You're asking Bethesda to add a whole nother structural branch to the gameplay. It's kinda late for that, ain't it.
Here's the link: http://www.gamesas.com/index.php?/topic/1179017-technological-advances/
To sum up, GTFO AND DIE, GTFO AND DIE, GTFO AND DIE!