Have you looked at Makehuman? It integrates into blender and exports other formats as well. I'm not a 3D guy but I'm curious how useful a tool it is.
Sorry for the delayed response.
I've looked at MakeHuman and I think it is worth a deeper look since it is possible to create a greater variety of body types (thin, fat, muscular). Fuse is kind of limited in that regard but has a better workflow. However, it is possible to create a body mesh in Blender and import it to Fuse. Although MakeHuman isn't as visually pleasing as Fuse I still think the graphical fidelity matches Daggerfall if used to create 'better' sprites (and rigged for future true 3D implementation).
"We are a way for the universe to know itself" - Carl Sagan
One of the things I thought was attractive about it was that you could create a large number of "people" based around a template. Each of those people would be different. It would be nice to talk to more than 4 different people while walking through daggerfall