Read through this, and have to say, the only things that I can take away from this is that:
1. Bethesda is vigilant in their trademark protection (which they need to be).
2. Notch needs to get a clue, some better lawyers, and start acting professionally.
3. Trademark/copyright laws can be silly sometimes.
I find it somewhat silly that people are pointing to "Notch said that they'd take back the trademark application and change the name" in order to maintain the Bethesda is evil illusion.
First of all, he will be changing it to Scrolls: XXXX, which does diddly-squat for avoiding any type of infringement.
Second, as it has been pointed out, Bethesda HAS to pursue this. They can't let it slide in any way. Yes, Notch has no change when butting heads with Bethesda, but if they let it slide, and two years down the road a big name company who can support a legal fight challenges it, there will be a precedent.
Third, I find it doubtful that this offer was made properly, that is, with all the necessary legal documentation. No self-respecting company or legal team would agree to a deal like this unless the papers were all in order, which given the apparent competence of Notch's legal team with copyright laws, is doubtful. Even if all the documents were in order, Bethesda would probably not say that they agree until it was all signed. That is just good legal sense, you don't talk about ongoing cases as often your remarks to the media (or the internet) can come back to bite you. For example, Notch is now on the record as to have making the offer, and if he in fact didn't, Bethesda can use this lie as part of their case.
Basically, Bethesda has been acting like a good company defending their property and rights. They don't seem to be spouting off about Notch's conduct, and seem to be speaking primarily through lawsuits. The filed a cease and desist, and when it was ignored took appropriate legal action, and continue to do so as the law allows. At this point he seems to be treating it as a publicity stunt.
Notch, on the other hand, filed poorly worded, overly general trademark applications without doing any research. Seriously, Google "Scrolls", and the Elder Scrolls home page is 6th. He has continually acted unprofessionally by treating this legal matter as a joke and broadcasting it to everyone.