It will be open source, so anyone can modify the engine directly, without having to use DLL overrides or exe hacks. It should even be able to support other mesh and animation formats besides just NIF, and video formats besides just .bik. You'll also be able to have proper 64-bit builds, allowing it to use much more than 2GB/4GB RAM without crashing. Plus, it'll run natively on OSX and Linux.
Even though 1.0 will be visually similar, additional features can be added, such as HDR, full-world shadows, and other graphical effects (tesselation, material shaders, etc). They can be done properly in-engine, and engine bugs can be fixed or avoided completely. Physics can be added to objects. That stuff comes later, though, since the first goal is to get it running like the original, then the bells and whistles can be added.
That all sounds promising and awesome! But how will this affect mod projects that have been around for years like MGE, MGE XE
(by Hrnchamd), MWSE, MPP, MCP.... will it make those mods obsolete? Or will it allow those mods to be expanded upon even further than what they could have before?
Other mesh/animation formats? Does this mean that we will be able to create new, smoother & much better looking body models? Better Bodies was made in 2003 at PsychoDog Studios and has since been the only body replacer. I would love to be able to create, or see created, new & improved body models. That in turn would mean we'd have to make new clothes, but hey, they did the same thing with TESIV.
Not sure what you mean by 64-bit builds. But it sounds like you're saying Morrowind will be able to render and run much more smoothly. Like say if I were to own a machine like http://reviews.cnet.com/desktops/dell-alienware-aurora-r3/4507-3118_7-34529769.html?tag=mncolBtm;rnav that has 16GB DDR3 SDRAM, would that allow me to play Morrowind at a much, much higher frame rate even with a myriad of big mods that cause extreme fps hits
(like Arktwend, Deus ex Machina, Morrowind Comes Alive...)?
Now when you say "tesselation", are you saying Morrowind could have the potential to look like the http://www.youtube.com/watch?v=9F6zSgtRnkE demo, given the right people implement the right kind of modding and tweaking to the open engine?
All these questions are referring to after OpenMW has been patented, packaged & shipped, so to speak.