A resource I have always wanted to see made into a mod (but don't have time on my plate to do it myself at the moment) is the http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=3345 that dongle made back in '05. Did some scrounging on ES Search, PES, etc - but I haven't been able to find anything like what I was hoping (just some actually in use in a few places beyond just one).

Not that i recall - would be a pretty neat tinhg though

However i did find http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=7366 - I think thats about as much as the resources are used.

The Black Mill quest mod is a great mod that adds some mills, but I guess not in the way you mean, because they act more like "dungeons" and / or are integrated in the quest line. So they fulfill a function and are not just eyecandy.

Quests with them would be fine, honestly, may main concern would be to get more of them in the game than just the random couple of them (stickler for consistency and such). The look of them (sans any retexturing) seems rather Imperial in nature, so seeing them logically placed about some of the Imperial settlements might make for a nice touch.

Since I am unfamiliar with the Black Mill mod, how many does it add and in what kind of placement method?

the black mill
http://www.tommyshideout.net/programs/tbm/

just in case.

7 big black mills, they are supposed to be ancient gateways to other realms though so a replacement may be inappropriate

I think Ald Vendras uses Dongle's windmills.

That is a pretty damn cool lookin mod