So would it be a viable RP with the current lore? In Oblivion that is.
Edit for clarification
You'd get more out of possession in a Dragon age rp, honestly. Even when possession was presented in Daggerfall, it was the "child is speaking daedric gibberish and being annoying" variety. Nothing all that interesting. Legion was a much more interesting possession.
As far as lore goes, instead of straight up possession I'd reccomend taking a look at the lore book Feyfolken. In that book, an enchanted quill goes horribly, horribly wrong when it turns out the daedra inside is a little more free than expected.