PS. I do like the instanced server with intelligent player placement though, so much better than the classical server model.
It's a far better concept really, in theory at least. One question I would like explained is how it deals with latency rising from physical distance from the server. In north america it might not be such a big deal as there's few borders to deal with and well-developed infrastructure, if you place your server farm in a central location latency won't be terrible for anyone in most cases, except maybe hawaii perhaps (or puerto rico...)
However take europe for example, you would by neccessity need a second server there, as cross-atlantic access adds several or maybe many hundreds of milliseconds of additional round-trip latency and that would make the game unplayable. WoW is pretty forgiving for an online game due to almost all skills being locked to a global cooldown, but if you're pushing 3-500ms ping or more it just isn't fun to play anymore. I can't imagine other MMOs faring all that much better either.
Also, europe is made up of upwards of 50 nations (yeah, crazy, I know!), with such clutter there's huge numbers of networks and ISPs involved with delivering internet packets. Additional issues may arise from that.
Now, EVE Online seemingly uses one single game server for everyone, worldwide, and I assume that server farm is located on Iceland so it seems this concept is doable, but EVE is a fairly small game. It's only recently that they cracked what, 250k subscribers? It might not be so easy for a game targetting a million plus, and knowing Bethesda, they're sure to want to hit those numbers.