I think it would be cooler to have an Arena type online. Players could take there characters into this arena for matches of 1v1 or 2v2 . It would be a simple, yet addictive online experience added to what should be a great game. Not to mention it would add an extra feeling of accomplishment for leveling your character and having quality weapons if they base difficulty on level scaling like in Oblivion. So what if you have the best weapons, armor and are level 100 in every skill, and it means nothing in game...... it'll matter in the arena!
....I don't know, I think it'd be cool. And they'd be able to manage and polish that sort of content much more efficiently, to deliver a much more rich and focused online experience than if they were to attempt a full game co-op sort of online play.