I would say that lore is not completely binding, Bethesda has in the past proven that they're willing to change lore to suit the needs of their game, I mean, Cyrodiil was supposed to be jungle until we got Oblivion. Now, I'm not saying this was a change for the better, I'd really have preferred jungle Cyrodiil to generic fantasy Cyrodiil, but still, it's an example of Bethesda changing the lore to suit their needs, and there have been ones before it as well. And who knows, maybe we'll see more in Skyrim too, but on the other hand, I doubt Bethesda is going to completely change everything in the lore. We're not going to suddenly see Skyrim turned into a tropical vacation paradise or lots of crazy new races added, nor are we going to see guns or what not, I'm sure. In the interest of maintaining series continuity, Bethesda probably won't completely ignore existing lore, is you just start doing whatever the hell you want regardless of whether it fits with the series canon, then there's no point in even claiming the game takes place in the same setting as past games in the series. So I'd imagine that when adding things to the game, Bethesda does stop to consider how well they fit with Elder Scrolls lore, it's just that the lore isn't really some kind of unbending iron law, more like a guideline, sometimes, it's okay to bend some of the rules a bit, or add new things, after all, if Bethesda never added things that weren't established in previous games, the current Elder Scrolls lore we know would never have existed at all, seeing as much of it was written in games that came after Arena. And I'd say that if anything, the Elder Scrolls leaves its lore more open for bending than other games because whereas many games which try to built detailed worlds have information not available in the main story introduced in "Word of God" fashion, the Elder Scrolls usually favors in game books or dialog, which are old told from the perspective of in game characters or the authors of those books, assuming they don't appear in the game, sometimes, the same game can have multiple accounts delivering different takes on a certain matter, each of which conflicts with another. A good example is exactly what happened at the Battle of Red Mountain, did the Tribunal actually kill Nerevar? Some accounts say yes, some say no, and we might never know the truth. This sort of thing provides a lot of fuel for discussion and speculation, which is probably why there is a reletively active lore forum for the Elder Scrolls. What some seem to forget when it's convenient to do so is that this also leaves Bethesda a little more room to change things, because they can just say the old information is wrong or outdated or whatever. Not that this necessarily justifies all changes, and usually, when you do make major changes to the lore, it's a good idea to add some kind of explaination for it, because if your game takes place in the same setting as it's predecessors, it's usually a good idea to maintain some form continuity, because when you start ignoring continuity entirely, the results are often not pretty.
I'd rather play a game with an awesome story and poor gameplay than the opposite.
And I would never play such a game, I would on the other hand gladly play a game with great gameplay but a boring story. After all, if I just want to experience a good story, I can read a book, I don't need to spend money on a high-end PC or current generation console to do that, and speaking as a whole, books have better stories than games. But gameplay is something books don't have, neither do movies, another medium that can tell some great stories, really, it's what makes games well, games. You know, that's why it's called gameplay, because it's a game, and you play it, and if the gameplay is bad, then the game is bad, no matter how great the story is, it can't change this. Not that I have any objections to having a good story in games, if I can experience a good story and still get entertaining gameplay at the same time, then that's even better than just good gameplay, and really, the two aren't mutually exclusive, and if you're going to have a story in your game, you might as well at least try to make it decent. Really, if the story is all you "play" games for, then what's the point of having gameplay at all? Might as well just make the whole game one giant cutscene from start to finish, you'd get the same thing out of it, and no need to waste time on trivial things like gameplay.
In normal games, it usually is Gameplay>Lore, but The Elder Scrolls isn't a normal game series. The lore is so immersive and intense that it grabs ahold of you and you're forced to read it. It's almost like reading a book. I can't tell you how much I wish I could even if it was for one day, visit Tamriel. That'd be the best day of my life, I can guarantee that. Now if the lore was generic, then I wouldn't care, but it's not. If I could walk through the steampunk dwemer ruins or delve into the ayleid ruins or visit the White-Gold tower or something...
No, it really doesn't force me to read it, usually, I only read whatever lore relates to the story I'm folllowing, or a book that catches my eye, although some of the parts of the lore are pretty interesting. But still, I've seen better, and worse too, and for a game, the Elder Scrolls has pretty detailed lore, and that's a good thing, it's just that when you look at most games on the market, that isn't really saying that much.
ou know, before Morrowind came out, way before, the official stance was that you would not be able to play as beast races, because the beasts were slaves, official lore. However, once the designers figured out a way to animate the beast races, suddenly they were back in, and freed beasties were all over the place. That is an example of technology directly influencing Lore. It has happened with just about every game, especially with the way magic works. The mechanics of magic and the possible effects have changed in every game. Look at the passwall spell. Or flying/levitation.
I was under the impression that it was because players complained, which would make it more an issue of Bethesda realizing that players did not want things to be the way they intended to make them at first. Which may also explain why they ended up suffering from limitations due to not being able to wear boots or full helms and not getting sufficient bonuses to make up for this, as if they weren't originally meant to be playable, there would have been no need to make them balanced well in comparison to other races. But maybe I was just mistaken.
As far as magic goes, though, I'd say the way it works in the game is already a product of gameplay mechanics, I mean, there's already clear examples in lore of spell effects that are not available to the player, and I strongly doubt that the ways in which spells work are really supposed to be limited to the current system of on self/on touch/on target with only variations in the spell strength, duration and area of effect. If anything, I'd say the current magic system is a product of spellmaking. Bethesda needs a system that makes it easy to allow players to create custom spells in the game, hence the current system, if that's the case, I'd actually say they should just remove spell making. Letting players create their own spells is kind of pointless if all the spells they can create are boring anyway.