Although I played MW on the PC and greatly enjoyed the mods available; I am writing now as a pure XBOX 360 player/customer. These are not in a particular order: :shrug:

1. - Better magic (i.e. - revisit the Morrowind magic system) - GET RID OF THE SPELL MAKING AND ENCHANTING ALTARS. Area effect spells should appear as an area of effect upon impact with the ground, and that area/sphere should linger for the duration of the spell. Allow items to be enchanted to cast spells (i.e. like classic wands, staves, etc...). Bring back levitation and slowfall. Allow custom spells to have custom graphic appearances and sound effect (e.g. - my classic wizard might want a concussive blast with thunderclap and lightening, while my assassin magi would want a concussive blast with an invisible wave of energy and only the grunts and thuds of his rendered foes.

2. - Revamp the inventory and spell lists. - Get rid of the keys, we don't need to see them. ALLOW DELETION OF SPELLS!! Both inventory and spell lists would be improved with a "Most used items list", which we could add to or remove from at will. As I improve my customized spells I could put them in my active spellbook, while dumping the useless older versions to my main library of spells (or delete the oldies). Similarly, the 2 weapons and 2 potions types that I use constantly would be in one bag, separate from the 500 other items crammed in my backpack.

3. - Cap the bandits, but don't cap me. - I can play the game as you envisioned it.....or I can become an ULTRA-MEGA-GOD astride this pitiful world. My choice, not yours. If you want to challenge me as a game programmer, then make more ultra-tough baddies in the depths of your dungeons. But at 85th level, while walking through the small towns, and roadside bandit camps.......I should be beyond any force of nature.

4. - Variety is the spice of life. Look at these forums, and the pride that people take in how their characters LOOK. A simple function in tailor shops (for clothes) and smithies (for armor) would allow pattern and multicolor selection for every single worn item in the game. This is so simple and improves replayability so much.

and 5....... I utterly and completely disagree with this point.
BETHESDA, it is replayability for your one player games that has MADE your company so famously acclaimed. Number and variety of quests. Different factions to join. Different play styles (not just Wizard v Fighter v Theif). The world is a sandbox, not a tunnel.

Make random quest generators.
Make random item generators (ala Sacred, Diablo, etc...).
And allow every scene to be taken on by avoidance/stealth or brutal force or silent lethality (ala Deus Ex).

I disagree with that, too.
I -like- hunting for stuff. It's why I enjoy Fliggerty's Armor Project for Morrowind so much. All the armor is in random loot instead of one, central merchant.
Even though it's kind of game breaking when the armor is all worth 10000+ a piece, but still.

1. More actors. Ridiculous to listen to the same 3 actors speaking for 1000 different people in the game
2. Skill points instead of leveling up with using the certain skill. Meaning when u reach a certain level u can distribute skill points towards strenght, dexterity, vitality etc. They can still keep the system where u get better with a sword by using the sword etc.
3. More change in landscape and areas. Would be great to have a change of scenery when running for long distances. Not make the mountains look the same everywhere u go. And most of all have different types of caves etc. Morrowind especially felt like, if u have been in 1 cave, u have been in them all.
4. Less quests. I think there are too many quests u get to take at any given time in the game. Maybe spread the quests around in bigger areas. Or realease more expansion packages where u can take on more quests.
5. More weapons/armors. I think TES lacks of unique weapons and armors which u can be proud of finding. Nothing beats the feeling when u have slain a big beast in Diablo, and u are lucky and get a big ass sword with fire damage and vampyrism etc. Or a armor that protects u against fire that those pesky enemies that spit out.

As this has reached post limit you can continue in the http://www.gamesas.com/index.php?/topic/1109526-tes-v-ideas-and-suggestions-174/ topic as this is not really all that different.