EDIT: I've abandoned this project and I instead recommend username's no nudity patch, which is a superior solution.
Spoiler!
Hey everyone, I'm going to be working on a sprite overhaul mod for Daggerfall. My aim in this mod will be to reduce graphically violent and sexual depictions within the vanilla image files, as if Daggerfall were to be made an ESRB "Teen" game rather than "Mature." I'll be working on this periodically, and I'll link what I have done below.
Cheers, I appreciate the contribution. I know people have issues with the nudity and blood, and I imagine this type of texture replacement will be wanted in the future. Keep up the good work!