Getting the older games to work on a modern PC can be pretty tricky, porting them over to a console would be murderous.
Pete has also said, flat out, that Daggerfall won't be re-released. He didn't go in to details but he seemd pretty adamant. There could be a number of impediments, such as the difficulty in getting it to run and in-game nudity. There's also an old rumor that Bethesda lost some of the source code, but I don't believe that's been substantiated.
Yeah, the time, money, and effort needed to get Daggerfall working properly on modern PCs, let alone making it easy to use on consoles, would probably negate a good chunk of any profits.
Well, if Mr. Hines will not release it, would he be amenable to changing the License to make it freeware? If he has no intention of re-releasing it (and thus making a profit), then he has nothing to lose by allowing the game to be distributed by 3rd parties (the Internet community), as well as edited (and fixed!) by talented folks. Nothing to lose, everything to gain (interest in the TES series, goodwill toward the community, etc.).
They might change their mind about re-releasing it in the future, so gamesas probably don't want to remove that option by doing something as irrevocable as making the game freeware.