No karma levels, but faction and NPC reputation.
Children should only be there if they are killable, no immortals.
Real karma is not that if you kill someone the whole world knows it and likes you less, real karma is you kill an NPC, and because that NPC is not there something bad or good(depending on view) happens.
You played fallout 3? Karma isn't even that Profound of a difference (Between good and bad, Neutral v. Good+Bad is very different). Pretty much the same stuff happens. If you have high or low karma, certain NPC's will join you as companions, and certain factions will be hunting you. But even so, I really like your Faction and NPC reputation a hell of a lot better.
Stuff that Should be in TES5 that was in Fallout 3.
*Many quest endings with varying rewards.
*Deep optional quests, but more of them. Fetch quests are fine to make money, but deep quests should have much better rewards.
*Pacing. Fallout 3 had a better pace and setup than Oblivion. Shoot more for Morrowind in the pacing department though.
*Speechraft was useful. Baring exploiting the load feature, Speechcraft was useful since you only got 1 shot.
*Guns: Just kidding, but the Physics of some of the guns (Railway rifle) are very similar to the Crossbow (HINT HINT)
*Faster Battles. Most battles ended pretty quick with either you or your enemies dying really fast. They never felt too drawn out or too easy.
*Good Enemy leveling. Pretty good balance of scaled and nonscaled enemies. Made you feel stronger while keeping challenge, I'd say pull it back just a tiny bit. No loot is scaled.
*Repairing. Made a little more sense in Fallout 3 than TES games, but kind of impartial.
*Food and Drugs are useful. I'd like to see all Food and Buffing potions work like the Chems of Fallout 3, with varying statistics. Skooma STR+10 Speed+10 AGI-5 INT-5 for 6 game hours per dose. Bread: Fatigue Regeneration rate +10% for 6hours game time. "Well Rested" +25% Fatigue regeneration rate for 18 game hours. ect. Maybe for balancing limit the Potion effects youcan have on at once by INT and limit the food effects you can have at one time by END.
*Cliffs. Play Oblivion and find 1 vertical cliff. You're not going to. Now play Fallout 3, Good vertical faces are all over the place. Bring back the Climbing skill with this!
*Battle Music change. The Battle music in Morrowind and Oblivion would start for a rat or the final boss. In Fallout 3, it starts for only strong (in relation to your level) enemies, I really like that.
*Trade Caravan. I liked being out in the seemingly empty wasteland and seeing Doc Hoff and his caravan walking through the wasteland. Immersion and useful.
Stuff that COULD work, but would need changing or limitation.
*Location Damage. Usually not an RPG's forte, but as HP goes down, I wouldn't mind seeing my character limping or bleeding out (all just aesthetic).
*V.A.T.S. For targeted Magic only, if at all. It allows for some cinematic magical effects and makes wizard PC characters stronger. Balancing maybe an issue? 25% fatigue cost +25% more Magicka for casting with "Target assist"?
*Weapon Placement. More item related weapon placement. I didn't like how 1hand is on the hip and 2 hand is on the back with NO EXCEPTIONS. Sure it's easy, but going the extra mile is the difference between 9.5 and 10.0. Examples. Daggers. Sheathed on the main-hand thigh (usually right in TES, though spear users in Morrowind were left handed). Longswords, off the Left hip like normal. Dai Katanas. Of the left hip (Samurai look) Longswords use Double wrap Swordbelts and Shortsowrds tend to use Baldrics. Back scabbard for Greatswords would also be nice instead of just gluing back weapons on.
*Radio. Not really, but in Bars and Taverns, special area sensitive music with some bards singing or something. Just a little atmospheric change that could be pretty cool.
*Random "Filler" NPC's living in the Inns and common houses. Give them names via random name generator, makes it more personable.
*Mister Burke, Lucien Lechanse. Burke was particularly interesting, especially as a woman with Black Widow...
*Beards. I'm pretty sure we'll get them though.
Stuff that SHOULDNT be in TES5 that were in Fallout 3.
*drinking water to heal yourself. That's a fallout thing.
*Freeways. Even more so than Deathclaws, the dreaded 6 story fall off of an overpass killed me.
*Experience Points. It can sometimes get repetative, but the unique skill based leveling system of TES is a lot more immersive.
*Body building elderly. In Oblivion and Fallout 3 I was dumbfounded as to how the elderly maintained wrinkle free perfect physiques. Why I stipped all the cloths off the Elderly is for your imagination to decide.
*1 Body type: Just a few would really help, although I'm not sure how hard it would be remodeling all the armor and cloths for a skinny/Ripped/fat/normal person.
*2 Pieces of Armor, Head and the Rest. If you do it, hell hath no fury like angry fans on forums.
*The same "unique" weapons. Can't take time to remodel or even just reskin a unique weapon? sad panda.
*Few weapon iterations/Poor balancing. Really only 2 kinds of any given weapon. 2 pistols, 2 assault rifles, 2 Rifles, ect. And most are poorly balanced.