What do you think I'm complaining about? It's not like that is just a small thing. So what if Todd says that? I don't care about the reason, I care that they totally changed a major thing and then came up with the flimsiest excuse of a retcon in the world. And, personally, I think having the game take place in generic fantasyland out of nowhere because of a movie you liked is a pretty bad concept. And my point still stands. What you said explained things in your OP did not explain anything. It would have if Todd said that before, not after. I don't think he said it before, if he did, please give me a source.
Right. So the excuse of them being THE ORIGINAL CREATORS OF THE LORE ITSELF is a flimsy excuse as to why they changed it.
As stated, they're the creators of the damned lore. If they wanted to, they could say Skyrim is a desert and we'd have no choice but to accept it. It's their lore and their games, so they can do whatever they want with them.
As for the subject at hand, I see it being a great combination. And so far, with Dwemer stuff returning, the new theme, and just the feel, I feel a very Morrowind-ish vibe with it.