I dont agree with you about the grapich but i havent played the game and dont think its charming that it have bad grapich, i just want to try the game some TES fans consider the best even trough they have "probably" played Morrowind and Oblivion. Better grapich would make it more believeable and i believe that is important in games like TES. I do hoever agree that they should make a Windows version. they should also make a version to XBOX 360 and Playstation 3.
If they updated it with modern graphics, it wouldn't be the same game. There's too much randomized stuff in Daggerfall - quests, landmass, cities, NPC's, dungeons, etc. - and realistic graphics would really make that too obvious. Of course, the very idea that Bethesda would ever even consider wasting time by doing a graphics update for DF is ridiculous.
One reason why they'll probably never re-release DF is because of all the advlt content. It would be a legal nightmare for them. And if they took that stuff out, it wouldn't be the same game.
BTW, you just showed me why I should never sell any of my extra copies of the game.