What sort of innovation would you propose? What they (Bethesda) are presenting here is essentially an open world where you can go where ever and do whatever you want to. At this point, any lack of innovation becomes user error (i.e. perhaps it is only you, the player, who is unwilling or not innovative enough to play the game in new and exciting ways that other players may already be doing right now).
In this scenario, the only form of innovation is merely to further enable the player to do whatever they want in more immersive environments. I feel like they've succeeded on that level in every way.
If you can think of some further innovation that would make the game better (aside from the obvious fixing bugs), then by all means please expound on your ideas.
Gee, I don't know...
Updated bones that allow for fluid animations without the meshes deforming?
Motion capture?
Cloth physics?
Hair physics?
One cuirass/braces/hair mesh combo that doesn't clip?
Or maybe some non-static sheaths? Or ones that don't go through legs?
Or how about a little more gripping stories? I guess it is cool and all that your toon can play tag with a kid toon...