If that happens, Bethesda can start from scratch and remake the entire series, which I am sure some fans would love, while others digress.
Keep in mind next-gen consoles are here and coming out very soon (the PS3 on the holidays). What does that mean? The next ES game will be on next-gen consoles. A perfect time to reset.
Okay, so if it does reset, imagine this: Mass-Effect style choices. Basically, your actions and choices in Morrowind affect Oblivion, which in turn affect Skyrim. Any guilds, factions, or quests completed, any characters killed, any events that occured would directly affect the game after it. The next-gen consoles are a perfect time to do this.
How would you like that? Otherwise, would you like a reset or not?