roninnogitsune: I would like to add a word of caution here. While I agree that Bloodmoon is a great expansion (if you can stay with the game to get to a high enough level to enjoy it.) Tribunal isn't as good and honesty, it has mechanics that can ruin your game, Install Tribunal with caution, especially since you're on a console and cannot install mods that would prevent it from ruining the game. The main way as that as soon as it's activated there are assassins that will ambush you for no reason when you rest. This can really hurt you if you're resting after a hard battle, and on the opposite side, they wear expensive armor and can screw up the economy. Wait until you find the game isn't challenging you enough to install Tribunal or better yet, just skip it and go for bloodmoon.
Uh...I might be wrong about this, but I believe on the Xbox copy I own it was all-or-nothing, play the game or don't. I will grant you that the assassins can be a problem (especially since on the PC version, you can face them right away if you aren't careful). I will also grant you that stopping them at such a low level without good combat skills requires certain...tricks that only a Morrowind vet would know about. I think it's still important to get the GOTY because Bloodmoon is an experience that should not be missed and can't be had on the Xbox without Tribunal.
As far as the economy goes, I just have three things to say. First of all, you can always toss the loot in a barrel. Selling it is a choice. Secondly, I can "break" Morrowind's economy right off the boat, Tribunal or no, and walk out of there with a full armor set, a pouch full of coins, and magical equipment.
Without selling the assassin's gear, and without mods. Thirdly, Morrowind's economy can be broken in innumerable ways, to the point where it is silly to claim there is any kind of valid economy. The whole point of the Elder Scrolls games is to get so filthy rich that you sneeze septims and blow your nose on magic scrolls.