Some people have suggested a new engine, combat and voice acting but I think that is very unrealistic. What I am suggesting is a third party developer simply makes the game able to run on the Xbox 360 and the PS3 at a widescreen HD resolution, configure the textures so they look a bit nicer (maybe even HD) and then distribute it as a digital download with the expansion packs bundled with it. It would give console players who started at Oblivion or Skyrim a chance to see what all the fuss is about, and looking at the sales figures for consoles I imagine there are a lot of casual players who started with Oblivion or Skyrim.
I tried playing the Xbox version on my 360 and it really didn't work very well, it looked and ran a lot worse than the standard PC version. As for PC let’s not turn this into a PC vs. console thread, everyone on here knows you can make Morrowind look better than Oblivion on PC and you don't need a remake so that's why this thread is specifically for consoles, the figures show a lot of people like playing Elder Scrolls games on consoles and they are missing out on one of the best in the series.