In Oblivion, there were quests where you could get related information from any town or faction member that pertained to that town or faction. Like if you were given a quest to find someone in a particular city, you could go to the city and ask about that person, and they could tell you where specifically to look, or at least ackknowledge him. With this unimportant-NPCs-only-have-rumors setup, does that mean only specific NPCs could tell me about that person in the city? That doesn't seem very nice or logical.
Yep. And I'm not entirely sure what would be so difficult about this... Expensive and slightly tedious, sure, to do all the writing and hiring voice actors. But it's not difficult to at least keep tabs on who lives in which towns/cities, what their occupations are, and just give the unimportant NPCs some dialogue options for other NPCs living in their town.
So what will happen with quests where we need to find a specific NPC? Are we always given specific directions by the quest-giver - "You can find X in the Fighters Guild HQ in Solitude"? Or, will we just walk around the town going door to door until we find the right NPC? Or, will we have to find someone in that town who has information on the NPC we need to find?
I agree with Korusus' point that this is perhaps a necessary way to go given the massive amounts of dialogue that will need to be written, along with the voiceacting. But I would have hoped for a little more padding on the NPCs, because it would have been useful for quests.
Anyway, we'll see how this works. The rest of the info sounds not bad to really promising.