I'm less upset about everything cut out of Daggerfall, I'm more upset about how Bethesda hasn't shown the slightest intention of trying to redo some of these great old ideas. Face it. The Arena -> Daggerfall transition was the only time ever Bethesda sought to add unique new content. Now they're just modifying pre-existing content and even trying to cut stuff out.
What the hell is your guys' problem, Bethesda? Take initiative again!
I know. The more I read about Daggerfall, the more I delve back into Morrowind, the less confidence I have in the trend Bethesda is taking. Sure, they make good games that get Game of the Year awards... but the competition really isn't much to look at. In other words, the games could have been so much better... I don't see why I should have to settle for less.
EDIT: Back on topic: are the resources for any of these projects still up somewhere? I mean, even if the original people can't work on it, if a new team wants to try their hand at a new Daggerfall engine, it'd be easier to build on previous attempts rather than reinvent the wheel all over again.