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So it's confirmed, the zone within a zone setup that SWTOR and a few other games have been blasted for is going to be in Elder Scrolls Online also. Here is one paragraph with the confirmation, followed by the source:
"Also note that layering and channels are not the same thing. The megaserver places players intelligently into channels to make sure your gameplay experience is good and to prevent overcrowding. So if you’re in Glenumbra, but you can’t see your friend, you may be in a different channel. You’ll simply be able to join your friend in their channel or vice-versa. Channels, however, will be largely invisible, as we’ll try to put you in the best channel with the highest preponderance of your social connections."