The Elder Scrolls II: Daggerfall continues living on with Daggerfall Unity, an open source recreation of Daggerfall in the Unity engine and a new release just rolled out with Daggerfall Unity 0.15.4 Beta.
Some of the benefits of Daggerfall Unity include:
- Cross-platform (Windows/Linux/Mac)
- Retro graphics are boosted by modern engine and lighting
- High resolution with classic style
- Smooth first-person controls
- Huge draw distances
- Quality of life enhancements
- Mod support
One of the big fun additions in Daggerfall Unity 0.15.4 Beta is the inclusion of two exclusive in-game books from the original lead designer, Ted Peterson. They give you a little background on a key figure in Daggerfall's story, and can be discovered once you progress past a key moment in the game.
From the release notes they say that "Ted wanted to be clear these books are in no way official and should not be considered canon. If Bethesda does something different with these characters in future then whatever Bethesda does is canon. Please also note that Part 1 and 2 are not the complete series, just the first two chapters".
Side-note: Peterson's studio, OnceLost Games, are currently working on a big open world RPG called The Wayward Realms.
The rest of the update for Daggerfall Unity is a mixture of bug fixes and localization enhancements, with this version intended to be a stable beta for general play - so you're good to upgrade to it.
See more in the release notes.