[Coot]

Some quick thoughts (I'll try to be more constructive when I've more time):
2. I don't see why not.
3. That really depends on the quality of the quests. I feel that quests could be added later though; the whole set up of Tel U. is more important. If that looks and feels good, other things can be added.
4. I suppose so. I'd take quality over quantity. A large town or tower with a lot of empty space, lots of NPC's with nothing to add make a mod less interesting.
Also, some modders fall into the trap of "I had so many great ideas and now i didn't or (couldn't) finish them adequately". One of the things that I truly appreciated of "The White Wolf of Lokken" for instance, was the fact that great pains were taken to take care of every little detail.
7. I get really excited when NPC's (can) do things that we haven't seen before. I mean, I guess you always should have a smith and an enchanter and all the usual people, but it would be great to have NPC's that do other things. maybe somebody like BG's Cromwell or Cespenar, who make items for you from stuff you bring them.