The fact that Bethesda has engaged counsel means they've already invested in defending their trademark rights. Agreeing to any "contest" in which they'd abandon their mark would serve as record (to other competitors) that their mark is diluted. No chance of that happening. Unfortunately this is a legal issue now, not a game.
There is no abandoning or diluting going on. The trademark is still intact, and they take the word "Scrolls" off the table as an issue.
Now if you decided to create a game called "The Younger Scrolls" they could still go after you! The fact that "Scrolls" as a singular word is no longer contestable would hold no baring on the legal action taken against you.
