2 - The reason I said face creation in Skyrim is more limited than Oblivion, is because Todd actually SAID this. If you have less control over creating your character, then it is obviously more limited, is it not? I'm sure they will have a quite a few nice pre-made features (obviously they will have more than 3), but from that statement I would say they were going for a quick and easy way to make a nice looking character, as opposed to a very in-depth system to create any look you like.
6 - As for the game world size, I was just hoping for larger than Oblivion not smaller. And yes, he pretty much states twice that the game will feel larger because you are forced to walk around the mountains (of which many WILL be impassable). See quotes below:
2. Yes, but he said "on the one hand", which is an important connotation to pay attention to. He's saying essentially that if you look at it one way there is less control. On the *other* hand, you actually have control to make good looking characters, which is new. And I don't mean "attractive" necessarily, but for that matter it was impossible to get attractive characters in Oblivion, since you couldn't even get ugly-but-realistic characters. The converse of this is "On the one hand, you have less control in Oblivion than Skyrim. You can't really make them look good/realistic, but you have tons of sliders to control the degree of ugliness."
6. I think you're still interpreting this wrong, which is odd considering the parts you underline in the quotes. He's not only saying the game space "feels" inflated, it IS inflated, due to the fact that from a top-down view, yes the game maps may appear to be the same size, but in Skyrim you have a lot of inclinedl surface area that needs to be taken into account. The mountains may be "impassable", yes, in the sense that you cannot walk in a straight line through them. He doesn't say anything about not being able to go up and around them. If you make a height map of the game, and then attempt to flatten it by pushing down on the mountains, allowing the areas surrounding them to expand outward to make way for the additional area, you'll notice in this flattened view, the Skyrim map becomes a lot bigger. This "verticality" also means that things like dungeons and such can be stacked on top of each other, making use of the additional vertical area, and this is hinted at in the transcript. You're literally using up the volume of the mountains to insert dungeons and other areas in, like ruins, etc. So it's not just that it "feels" larger, there is literally more surface area because of the mountains. Not sure if it's transcripted in the OP, but he also says something like "I'm not sure if you'd say the world is contracted or expanded", which sounds kind of weird without this context. He meant that the world is literally larger because of bunching up some of the playable area into the mountainous regions.
This of course depends on how much of the mountains remain completely impassable versus the areas they make playable, but going up into the mountains, on foot, in the snow, up windy paths is certainly going to help make it "feel" bigger as well.
This person sums it up quite well:
Now, me, I took it when Todd said about walking around the mountains more to mean "around" in the same sense as when you walk around town. That we would be able to explore all of the mountains, and not have to walk around them through the valleys and whatnot. If that is the case, then yes it will seem more expansive, as they could have dungeons layered on top of other dungeons and you travel up the mountain. Much potential for exploring. Plus they said in the GI article that basically anywhere you can see in Skyrim you can walk to, and visit, so I think that says none of the mountains will be impassable.
Though I will say I doubt that 100% of the mountains will have playable surface area. Mountains should be very treacherous. I certainly don't want to be able to zig-zag up impossibly steep slopes like in Oblivion. On a horse. If I was riding a mountain goat, maybe.