I was wondering if the Skywind team was going to flag all the essential NPCs from Morrowind as essential in Skywind. The reason I ask is because that word popped up in a spreadsheet in the recent development video that was posted on your YouTube page (development video #3).
I'm hoping the answer is no. One of the pillars of Morrowind was the player's ability to do whatever it is they wanted, even if it broke the game. "Essential" in Morrowind meant that players were greeted with a popup message whenever they killed an important character and told as much, meaning they could kill anyone and everyone they came across if they wanted to, even if it meant (main) quests could no longer be started or completed. "Essential" in Skyrim is entirely different, completing removing the player's ability to kill any character they wanted if those characters were deemed too important to die (related to quests).
I understand that Skyrim (Oblivion, really) brought with it new mechanics that could cause trouble if all the important, quest-related characters could die because the world is "living" and dynamic, and characters out in the open could fall prey to other characters without the player ever even getting involved. However, I think the "protected" flag would help prevent that, as well as allow players to play the game however they choose to do so, even if it means failing quests. It seems like the best of both worlds, to be honest, and I'm hoping that's the route you guys are taking.

Schwerpunkt wrote:
You answered your own question. Especially being a mod, it will have 10x as many bugs and problems as a full game. We don't want half the games quests to be unplayable. However, it hasn't really been brought up, but I think the technical limitations will definitely make it so we have to have essential NPCs.
The world won't feel living and dynamic if you can't progress in any quests and entire towns are missing due to cliff racers.