With the gameplay video, we saw two examples of AoE damage- a spin-around attack, which can only be assumed as a sidestepped swipe that causes AoE damage, and a spell resembling a fire nova.

The question is, is this a good development in the TES world? Should there be more of them? Or is it a bad move considering TES' history?

I'd like to have some "Crowd Control" spells and attacks. We already know Circle of Protection will push enemies away from you in a radial burst, so it could just be a new spell form. Oblivion had Ranged, Self, and Touch, so I could see Burst showing up alongside Rune.