QUOTE(Rohirrim @ Nov 19 2013, 03:50 PM)

Well, the Dominion's the white elephant in the room. I'd say somewhere in the Aldmeri territories. Summerset Isle'd make a good one, since the natural sea boundary saves any glaring invisible walls, and Valenwood's probably too heavily forested and wild to be practical. I'd say either the Isle or Elsweyr.
I'd disagree with your reason for ruling out Valenwood. Especially if a lot were to be set up in arboreal cities, which get up and move from time to time.
I don't expect the Dominion to be dealt all at once, so I'd expect Valenwood or Elsweyr as the next, with the resurgent Empire, or something else that will take its place - maybe a republic, with an elected head - pushing the Thalmor back toward the Summerset Isle. That leaves another game in the series to deal with the final offensive into their territory.
I would like to see technology advance a bit, and someone start to understand and reproduce the Dwemer technology - mechanisms powered by magical forces. They've already hinted in that direction, with the Skyrim automata containing soul gems as well as scrap metal and gyros. Since soul gems get used to recharge weapons, it would make sense for them to be used like batteries to power automata, too. Welkynds and varlas would do the same job, but get their magicka from other (geological) sources. Throw in a way to recharge the welkynds and varlas over time at an Ayleid well, and you've got a power economy that fits the lore.
And I also expect a Black Marsh episode some time to fill in the Hist side of the picture. That doesn't have to be part of the Empire/Dominion story, or even run concurrently.