Morrowind was a great game, oblivion better, it's time for new TES! In new TES I would love next things:
BIGGER maps, more provinces in one game, like...skyrim and...valenwood?
More realistic bows: I liked the oblivion bows, but...I would love a touch of realism in this one
A simple armor that you can put over clothes, like a hunter armor, or an archer armor.
More dramatic situations and quests, more karmic and moral choices, like, in arena, at some point in the quest, you get an option to fight your friend or not.
Everything you do has an impact on the world, if you...free a prisoner (a quest for example), he may go out and kill someone and that will trigger a new quest. Like, you have option to free the prisoner or not to free him, if you free him you get some quest that you couldn't get the other way, and if you don't free him you get a different quest (optional)
Oh, yes, decapitations...and finishing kills. Game is meant to be mature, right? There are mods for oblivion including decapitations but I always love it the 'vanilla' way. Like, in a fight, you can chop someone's head off, or break his leg with a warhammer, then when he is lying in pain at the ground, screaming, you crush his skull with your warhammer.
Animations. It was frustrating that in 3rd person camera my character would do a flipping attack, but in first person all I would see is infront of me, and the sword approaching. If my character spins in 3rd person, why doesn't he spin in first person?
Remove the 'rumors', its useless. And the dialogues in oblivion were...borring? I liked the fallout 3 ones. Where instead of saying 'yes' or 'no' you can ask 5 more questions, asking about what are you getting yourself into. More interactive dialogues. If someone says 'Did you hear that the Countess of Leyawiin doesn't like Argonians?' you can reply to that with 'yes, i have heard' 'no, i haven't' or some other choices. If someone says 'Did you hear', i am expecting to tell him if i have heard about that.
Nicer PC's and NPC's. In Oblivion they never looked....like people? I just couldn't feel the role I'm playing. I don't want to download a mod to make people nicer and more realistic. Please
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Some basic looking armor, not some ebony gold plated (add that too), but some spartan-like armor.
Your choice of race WILL have an impact on the game. In oblivion it doesn't matter if you are an orc, argonian or an imperial. Everything will be the same, almost, the dialogues, the quests, everything. If you are an orc, let the people fear of you, let the other orcs respect you. If you are imperial, some 'lower-class' race will treat you with respect. The only impact on race choosing in oblivion that i found was that countess of leyawiin tells you that she doesn't like you staying in her city because you are an argonian.