Not to mention the fact none of it happens anywhere near Skyrim, so you'd have to go about recreating Blackmarsh and a devastated Morrowind, and possibly Cyrodiil, depending on which parts of the book you'd want to play.
Not really. With what we know from TIC we should expect to see something happen in Solstheim, if not Skyrim itself, when the story is finished in Lord of Souls. And based on the Lord of Souls cover art, it will have some serious action in Cyrodiil as well.
And as for the lore being "unfortunate"..... really? Why? The lore in the book is just as dramatic as that of the games, and it doesn't even do anything really drastic. People complaining about what happens to Morrowind is just silly, because it is part of the history between TES4 and TES5.
Bethesda gave the go ahead on every single part of the lore described in the book, so they have it under control. It's planned to incorporate into the history leading up to Skyrim's release, hence why Lord of Souls won't come out till Sept. 27th.