a lot of people were disheartened at this claim too. Bethesda stated
"online play is in our long term plans but it will not be included in oblivion or probably the next in the elder scrolls series"
Which suggests a couple of things to me.
1)They dont really want to put TES up against established bigboys in the MMO market
2) They think there is still a market in offline RPG's
I think they are right on both counts. The MMO is a different beast, it has its major contenders and is far harder to control, ill come back to that last point after.
Equally there
is still life in the offline RPG, the offline RPG being a bit like reading a good book, quiet, personal and utterly absorbing. Online RPG's are like watching the movie version of the novel with 6 cans and a room full of mates fighting for couch space. Sure fun and entertaining at the time, but somehow the point is missed. with regaurd to branding, look how poorly FF did when it attempted MMO, there are no garauntees.
What was that i was saying about control? Well some RPG universes are consistent, like any quality story should be. So having 'Sc0use-twonk69' telling you to eff of or he'll have his dad round, perchance could break the spell of an otherwise captivating universe. Certainly its not a term ive ever seen grace a Tolkien book, except those copies kept at the detention-end of my old secondary schools library

.
My point being that seeing a band of 14 slightly laggy and glitchy dark elves having a scrap over a treasure chest with their silly floaty coloured names bobbing about above their heads just aint my RPGCoT (cup of tea

). The story i create in TES is mine! im free to relay it on here or anywhere else as i please, and i genuinely enjoy reading or hearing about others. This is the most basic and old school application of role-playing applied to a modern game.
Im not saying MMO's are bad, not at all they are some of the most social and inspirational places you average joe can go, but they are not really RPG's. RPG's suggest you play a role, in an MMO you play yourself in a world with different rules, i prefer to just play myself in real life.
TES will undoubtedly go online one day. I can only hope its in a day where an MMO has been refined to the point that it is how all games are played, where people can play their game their way with other real people and where this doesnt spoil the magic of a good, old fashioned, story.