The bulk don't care about lore. If they get to ride a dragon and kill another one, it'll be the best TES game ever... Does that mean they're bad people? Hell no. Does that mean they're TES fans, I wouldn't really classify them as TES fans personally. I honestly think for the majority of TES players probably don't even know who Galerion is.
>.> Now, I try and keep up with the lore, though I'm admittedly a novice. I know the basic ideas behind each race, as well as their histories: Aldmer = Proto-mer, Sloads = Despised Cretins, Atmora = Land of men, etc. I don't know who Galerion is... Who is this Galerion?!
Furthermore, I would say anyone that feels gameplay and lore are seperate needs to rethink the entire situation. They aren't seperate entities. The gameplay is dependent upon the lore for inspiration, while the lore is reliant on the gameplay and "teknologiez" for expression. While there might not be dragons of fire and horses of water (which are rather foolish ideas to begin with) as technology increases, the lore can be expressed in new and different ways, influencing gameplay and the "bad-assery" of the game. In order to be a great game that makes the best of the technology at its disposal, it doesn't need to change the lore, rather expand upon it.
We have yet so many things to be explored in the Elder Scrolls universe: The Thu'um (The Voice), The Tsaeci, the Ka Po Tun, new "undiscovered" varieties of Daedra that serve the Daedra princes. I think someone mentioned the Shivering Isles of a way technology, inspired by lore, served to expand upon the game without breaking lore. Bethesda has always managed to do this in some way or another, and I think we can rely on them to do so in the future.