"You know the Ministers of Great House Affairs in the Curia building? Well, each of the Dark Elven Houses has been asked by the Imperial government to send an official envoy to work with the Minister for their respective House. From what I hear it hasn't gone quite as planned. The Telvanni and the Dres, for example, don't seem to care much about diplomacy." -> the Telvanni have sent a Storm Atronach as their official representative; the Minister doesn't understand what it's saying. If angered the Storm Atronach could be trouble.
"I don't mean to spread upsetting rumors, but... there are whispers of bodies that have gone missing in the Arkay Tower's mortuary. Families that have come to collect their deceased relatives have found nothing but empty coffins. Either the priests there are doing sloppy work or something ghoulish is afoot." -> the court physician's assistant is snatching bodies for medical study with help from one of the priests. The newest victim of the graverobbers is a young Imperial man whose father doesn’t yet know that his son’s body is missing.
"Everyone's waiting for his lordship Caros Cocceius to announce the Ebon Tower melee tournament officially. All the ambassadors in the province embassies are no doubt waiting eagerly to send the invitations to their masters in their home provinces. There's gold and glory to be won in a tournament!" -> obviously a medieval castle needs a tourney
"The Stendarr's Tower gives a lot of people the chills. They say it's haunted by something terrible. Something unkillable. Someone who knows how to exorcise ghosts should probably investigate it." -> the ghost is there, and can be permanently killed if it's killed when it's soultrapped. there's a guard NPC at the tower entrance who briefs the player about the situation in the tower, but atm there's no Journal entries or anything
Punavit should have some kind of penalty to carrying, like perhaps service refusal in the Indoril areas, or indoril guards notice it on you and put a bounty on you.
One of the suggestions was they send bounty hunters/guards after you if you rest in the Indoril area with it, which might be too extreme.