ScentScape (http://www.scentsciences.com/) is a new scent delivery system that adds a new dimension to gaming. I think a game like The Elder Scrolls is a perfect candidate for something like this. It's a game that you get immersed in and this could add an extra level of immersion. http://www.gizmag.com/scentscape-system-adds-smells-to-games-and-videos/17615/
Imagine actually smelling the lush forrests your walking through and smelling the trees or smelling the burning of the Dragon's Fire. (One thing though thank god Bethesda doesn't include toilets)

Hmm, I like the smell of undead and corprus victims in the morning! :sick:

http://media.giantbomb.com/uploads/2/29661/1665960-dwarf_super.jpg

Hm... It would be rather unpleasent in some cases. Walking through the wilderness and smelling a creature decaying. Walking through town and smelling nord and orc barbarians passing through to sell furs. Not to mention the dank dungeons or sewers. And I think some modders who would have access to this technology would just be downright cruel to us. I won't deny that it would be immersive, or even pretty cool. But I have seen a lot of places in TES history that I would prefer not to smell with my own nose. I would have to imagine that trolls have some pretty nasty BO.

Edit: That being said, I suppose I was a bit one sided here, and Captain Aus9, you are right that it would add a new dimension of immersion. There are other places in the elder scrolls that would be pleasant to the nose. Like you said, the smell of the general forest, or the smell of heated dragon fire. And even thinks like the ocean would be pretty awesome.

Yes, because smell-o-vision was such a wonderful idea the first time around.

This. It flopped for a reason.

Sure, smelling the lovely forests would be great...but there are also sewers to explore.

The forests are also home to things like trolls and ogres- would we be able to tell live ones from those a week dead by smell, or would they be about the same?

Smelling dragons' fire? They usually don't snort fire just for giggles, that smell is just as likely to be the "aroma" of burning flesh. :sick:

Nah, I think we're just as well off without Smell-O-Vision v2.0, thank you very much. It would only be "more immersive" if it was always on, and I think about half of what it was making smells for would make us wish it were turned off.