It might be really cool if the arena(s) had some kind of re-spawning dungeon kind of feel to it. Every so often, new opponents would appear in the sparring room or something. Maybe they could have something similar to the Roman system, they make criminals fight, that way the prisons are not as full... I finished the arena, and now all I have to fight is minotaurs? I'd rather fight daedra and spriggans and bandits. Maybe throw in a few death row prisoners to spice it up. They could even throw in some random side quests where you rescue some unlucky townspeople from crooked arena justice before it's too late!
I don't know how you guys feel about this, but I would be OK with becoming a lord of a castle and city, and settle down. Maybe add a few city planning elements for it, decide where and whether to place buildings, shops, an arena, a church, fountains, etc. It'd be neat to be able to sell people property if you like them, or tell them where they can go (hint: not here!). Decide how much a home costs and what kind of look your town will have. Maybe you will name your town KnightsVille and only let Knights live there.
I don't know how many times I am going to rant about this, but, I really like the idea of a living populous, where people settle down and have kids who grow up and do things, and it could go on for generations. To save processor and HD, the system could have dark brotherhood kill people (and possibly you!) and other unfortunate accidents, like an adventure gone awry. I hope they're working on their AI system!
Also, it'd be really cool if they had some kind of asian lore to the fighting techniques. For instance, chackra flows, and pressure points fighting techniques that make you go limp, and dislocating joints. I for one, really like the martial arts. Where does magicka come from exactly? An organ or a gland? From a flow similar to chackra? What if you could block a mage's magicka flow with a jab to the throat, or disable a lunky axe weilder with a well placed pressure point. I'm sure it'd be relatively easy to implement, as they already figured out localised impact calculations for arrows. That just reminds me about the lack of *head shots* in oblivion.
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