That's were you make using a skill only level up the skill used. Using lockpick levels up lockpick. Using blacksmithing levels up blacksmithing. Its actually kind of odd they didn't go that way given the whole classless system. Usually those go hand in hand with skill based systems.
That is actually the best way to do skills. It makes your characters unique. Of course there would have to some sorts of limits, since no person should be able to excel in everything. That's where ES -games go wrong. You can do everything to the limit on one character, if you spend enough time.
But that kind of major change is unlikely now.