Honestly, while this has obviously been beaten to death, the news presents to me two concerns.
1.) The game mechanics will be thoroughly dumbed-down, not streamlined.
Before anyone goes into a rage with this statement, it's nothing to do with Skyrim being developed for consoles vs. PC; it more has to do with the general trend of gaming. RPGs, the style of RPGs I prefer at least (Morrowind, and the old collection of gems from Black Isle such as Planescape and Baldur's Gate), have been dying a not-so-slow death. Modern titles from old powerhouses such as Bioware are more action games than RPGs; same goes with the Final Fantasy series, or Oblivion.
Unfortunately, this is largely console-driven. They're cheap and highly accessible in comparison to a PC; very few people build a $2000 PC if they aren't a serious gamer. Countless millions will buy a console, serious or not. In order to tap into this vast market, the game must be dumbed down. This may involve removing numbers and stats in any way possible (because math is evil, ZOMG!). It may instead translate into cover systems and regenerating health that we've seen in many recent FPS games, systems which in effect destroy the intelligence of how to approach a situation. It's not to blame consoles; more just the nature of the beast (or beauty, depending on how you view them). There are of course countless other methods developers are trying, with varying results.
2.) The UI will suffer.
Now, let me address this in a simple phrase: consolized menu systems in RPGs suck. They just really, really suck. There are two primary reasons for this. The first is that inventories are just too large; you aren't dealing with 5 guns and a medkit, you're dealing with hundreds of keys, quests, spells, alchemy ingredients, whatever. Scrolling is slow. That's why RPGs in the past were designed around highly visible systems; Morrowind was a perfect example. Your inventory didn't have a ton of scrolling because you had high-resolution icons laid out in a grid. This is far more efficient. It is also very hard to work around easily with a gamepad; it almost necessitates a mouse for easy access. I highly suspect the desire to remove a lot of skills and simplify the game is to make the menu systems small enough to be workable; Oblivion's UI was an epic disaster because of the forced scrolling. Scrolling, however, is about the only method developers have come up with for console interfaces (in some disguise or anothe). There isn't a desktop-style option.
Another reason is that there are just too many menus to deal with in a proper RPG. You have your character stats, your inventory, your spell and weapon selections, your map, your quest log, your personal notes, your actual on-screen displays, etc. etc. This is a system that is ideally managed through a series of full-screen windows (or, better still, custom-sized a la Morrowind). Scrolling menus are slow, here; hotkeys are the way to go, and while Oblivion actually managed this OK, Fallout 3 did not. Consider that if I want to check what my RADS level is, I need two clicks; I cannot simply hit a hotkey. If I want to get to my items instead of my stats? Two clicks. I could go on and on. It gets irritating. That the entire thing is rendered in 3D to try and disguise the menu nature is worse; the mouse movements are not as crisp as they could be (and it is not an issue of the game performance).
These two concerns add up to a growing sense of unease about Skyrim. Bethesda can certainly surprise me, and I welcome them to. But the fairly consistent failure of developers to do so is why PC elitists scream when franchises they have grown to love move on to greener pastures. It feels like a betrayal when the console-styled changes harm the overall product. It would be different if they booted up a whole new franchise for it; that doesn't leave the same sour taste in one's mouth.
I guess that brings me to my end point. If Bethesda is intent on producing a dumbed-down fantasy action game with RPG elements, be my guest. But don't fucking attach Elder Scrolls to it. TES is synonymous with RPG for your most loyal core of followers; we expect an RPG out of this, in every sense of the word. All the depth, all the difficulty, and all of the sense of reward when you finally realize you have managed to survive in a strange new world. To attempt a different aim is, largely, a cash-out on an established IP that rightfully will piss off their most loyal of fans. Hopefully they deliver the goods =)