People like you are ridiculous. Why do you always have to boil everything down to "lol they r morrowind fanaticz"? People here simply think that it was a cool system. Lots of people don't wear helmets so they can see their character's face, and the hands are in front of the body, so you can mostly see the pauldrons and the cuirass (assuming that the upper body is what the mind focuses on, which I believe is the case). What I'm trying to point out is that the pauldrons are actually in an important spot, and it was a neat idea to allow the players to customize them.
It would have been even neater if there had been capes, hoods and scarves as well, not to mention belts which were even available but didn't appear on the character. Morrowind
was not perfect. But it did have that one element that was cool and people want that back because they see no big drawback. (Having to look for more equipment is something many people see as a positive effect.)
Since the release of Oblivion in 2006, there have been endless mods that add all kinds of customization items for the player, often in very tricky way (because the slot number was so limited). Glasses, hoods, scarves, capes, cloaks, hats, adventurer belts, thief belts, priest belts, beards, eyepatches, you name it. These mods have hundreds of thousands of downloads.
edit: And what, spears are overpowered? How so? And even if they were, how was removing them the better alternative to simply reducing their damage values?
(That levitation was removed because of design choices such as closed-off cities and dungeons where the last room often had a secret passage that led right back to the entrance etc., and not because it was overpowered, should also be evident - again, you could just increase the spell cost or the required mastery level)