I replayed Morrowind some time ago with the mod compilation that came out was it ~new year's? The MGE one or what was it called? Personally, I found it immersion breaking and I really preferred the game in the unmodded state. Unfortunately the game wouldn't let me revert without losing my save, so I dropped it.
Admittedly, this does look beautiful, but eye candy has never been important for me.
N0x0ss: Would gladly play morrowind again, but I got spoiled by the teleportation system in oblivion and skyrim... and it doesn't feel great to cheat in morrowind by entering teleportation commands :s ...
The fast travel system in Oblivion really killed it for me. Sure, the world was huge, but fast travel made it seem small and arbitrary.
I really loved it how you had to plan your trip in Morrowind - it was a meta-game. Silt strider, boat, Mages Guild, Divine Intervention, Almsivi Intervention, Mark & Recall, etc. Mastering all of this taught you a lot about the game!