Yes, I would so play it. But I'd most likely play it too if it still had character creation on at least of what you look like. I'd most likely play it if it was like left 4 dead because that would be an ultimate badass game now that you mention it. Imagine three other dark elves hacking and slashing with you on a horde of Daedra or rat or werewolves or vampires. All of those characteristics put together would make one of the best games I've ever played in my life.
I've thought about a game like that for a long time. Instead of having to select pre rendered characters, each player online could make their own and join your party...OR you could just select architypes if you play splitscreen. Mix in some RPG and loot collecting/leveling elements, and this could be an amazing game.
Other games made like pre-existing franchises could be an Elder Srolls Castlevania, Elder Scrols Sims, Elder Scrolls like Resident Evil, or Elder Scrolls Civilization game. Character creation and customization would always take the forefront, but exploring other options and gameplay technics would not only net more income for the dev teams, but it would expand on the playable franchise, introduce new gamers to the series, and establish other teams in the studio.
I deeply love TES as it is, but to see it expand and Bethesda establish teams devoted to other genres within the franchise to expand their horizon would be incredible. I just dont think Bethesda is scatching the surface of what the series is capable of. By no means should it become Guitar Hero or Black Ops by overflowing the market. (Now that I think about it, an ES game based on a Bard Class using Guitar Hero mechanics could me fun, even if it was co-op based gameplay.