Sounds like it. In Daggerfall, outside of the main quest every quest was pretty much randomly generated. Skyrim's taking that and making it much better and modernizing it.

At least, from the sound of it.

Yes, but more complex, dynamic and less extensively utilised.

I love the idea of being able to play through side quests as one character, and having completely different quests with another(person/place/item). Adds to replay!

Much, much more in depth, yes, and much more into the formula that generates the content.

However, there are much fewer dungeons in this game compared to Daggerfall. Never-ending quests in Daggerfall (though they became repetitive) won't be the case in Skyrim.