Actually, Cray, I think Daggerfall did have randomly generated quests (similar yet different thing).
In any case, I am actually a little worried about this "feature", example: remember the Mages' Guild quest in Oblivion:
(if you didn't read the spoiler: insert "after epicness" here) you become the Archmage of the guild
My worry comes in thusly: how do randomly generated quests from the NPCs then hold up as something reasonable for a member of the Mage's Guild to personally ask the Archmage to handle especially when his origin story within the guild is the stuff of legends? This may be handled intelligently or it may not be... *sadly envisions the head of the Chorrol Mages' Guild hiring THE ARCHMAGE OF CYRODIIL to collect carrots for a potion of night vision*

It remains to be seen how well they did this...