Saw the trailer... got really fired up... Here are a few things I've been thinking about...

Guard Stealing Reform

-When you have a good reputation with a person (Or guard) who catches you stealing there should be a "Put it back" option. Where you give them the item... and in exchange... you don't have to resist arrest, or pay a gigantic fine for accidentally picking something up instead of talking to someone (like you originally wanted).

Illusion

Invisibility Reform-

I don't know if this has been addressed, but the way hostile NPCs AI react when you go invisible in TES games ought to be changed. I smash a guy in the face with my axe and when I go invisible... they just sit there, take a few steps around, and say "It must have been the wind." I can repeatedly hit them in the back and they just get confused. I think if I just hit them and went invisible, they could be a lot more sensitive to sound... They could listen and when they hear sound, attack towards the noise... or just go about flailing around attacking the air, yelling cursewords to alert all their friends (Or running to their friends)

Distraction Lights-

You guys know the light spell... what if you could cast a ball of light and throw it like an arrow... this ball would last for a minute or so... and distract NPCs so they walk up to it. This could be very useful for setting up sneak attacks or distracting guards (For a thief)
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Paralysis-

I thought of a new way to approach paralysis.... assuming the "limbs" feature used in fallout will be making an appearance here. I think "Limb paralysis" should be a cheaper spell than "full body paralysis" (which ought to be quite magika intensive). Limb paralysis would paralyze the limb you hit with the spell (Target spell). If you hit a shield, it'd paralyze their shield arm, sword would paralyze their sword arm, 1 leg would make them limp and be much slower. To prevent stacking and abuse, make it so that only 1 limb can be affected at a time, and when hitting a new limb, the previously paralyzed limb is freed from paralysis.

Alteration

Levitation- I've been reading in to this debate a lot. I see the problems with it, but I also remember the novelty. Is Levitation truly beyond saving? Maybe if nerfed...

-Achieving a mastery of alteration (Level 100)
-Require purchase of a unique Perk and/or completion of a special quest
-Actively drains Magika per second (Something like 80 Magica a second (While using it, mana regeneration would stop completely and mana potions wouldn't be consumable on top of this), and a cooldown so you have to wait 45 seconds before levitating again would make long levitations impossible)

This kind of levitation would be almost like a "jump". You wouldn't be able to scale mountains with it, but it'd be an interesting fluke for a battle, a crazy new way to sneak Above people, or a quick escape. Maybe there'd be a few secret places you could only access if you had levitation (I know you Morrowind guys remember how sweet that was)

Weather Alteration- This would be another EXTREMELY high end Alteration Spell.

-Convoluted prerequisite quest.
-Quest can only be activated if you're level 100 in Alteration
-300+ Mana. Can only use this spell once a day (week?)

One-Handed Weapons

Sliding dagger perk

Effects- Almost no recoil after being blocked while using a dagger.

I think this would make using daggers more reaslistic... and give them a different gameplay element.

for the guard theft thing..

if you have to pay a fine.. make it an ON THE SPOT FINE... not have to go through a loading screen to the castle ie oblivion.