I'm really hoping this isn't true. An Elder Scrolls MMO is an absolutely terrible idea. The whole point of ES games is to make YOU feel special, unique in the game world. Another MMO with countless nerds turning in the same quest every 10 seconds will kill off any feeling of accomplishment you might have had.
Can you imagine sharing the end of Skyrim's main quest line with 30 other jerks on top of the Throat of the World?
And I really can't see Bethesda just blowing off the mod community after the years of support they've gotten. You can still play Morrowind, which is 10 years old, but have it look like an entirely new game, today with all the user-made content that's out there. You certainly couldn't have user-made mods cluttering up an MMO for obvious reasons. Is Bethesda really ready to cut off a legion of fans with this approach?