Depends on what "remake" means.
Original Daggerfall had a huge number of towns, and dungeons, but they were procedurally generated from building block pieces, so there wasn't any real variety. I can't see them wanting to repeat that aspect, and doing that number of locations any other way would be unworkable.
The story could be re-used in a reduced map of the Illiac Bay area, with just the required cities of Daggerfall, Sentinel, Wayrest and Orsinium plus a few other locations for the quests, such as Direnni Tower, Scourg Barrow etc. and a scattering of dungeons to support the side-quests for the guilds etc.
I'm not sure how they would handle the Orcs in a remake. They weren't playable in Daggerfall, and were always enemies (except for Gortwog himself, who just got involved in a couple of quests). Imperials weren't playable either, but they really didn't exist in the game as a separate race.
Anyhow, there have been rumours about each of the provinces for the next in the series, so I doubt this is any more real than the Redguard remake one. In that case, they'd renewed the trademark, which was a bit more concrete.
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Mods for The Elder Scrolls single-player games, and I play ESO.
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