I used to hate Oblivions fast travel simply out of principle, but I must admit I've grown to like it. Sometimes I just want to get to a specific place and I'm not at all interested in random encounters. For example if I'm full up with loot and I want to go back and sell it I don't want to happen upon some other encounter that would bring in even more loot.
But I really liked Morrowind for it's immersiveness and it's random encounters. (snip)
My opinion is like yours in many ways.
See, I like Oblivion's fast travel system simply because of how it works with the game of Oblivion itself. With even the random encounters mostly level scaling with you, I'd rather not skip through the forest and get into an epic struggle for my life every 2 minutes. I don't know how to explain the feeling it gives me. As I travel around in Oblivion's game world, it feels like I'm wanting a RPG, but only getting the next level of space invaders. Does that make sense?
Oblivion's fast travel system lets me skip a lot of that. Yet, as you can imagine, it prevents me even more from immersing myself in the game world.
Morrowind? When I'd get tough enough that I'm handling daedra, I can usually whack the random nix hound as I'm simply strolling by. Usually without even stopping. No hassle. Ok, sure, it was usually a cliff racer. Same effect. A 2-second smackdown. Onward we go. Yet, the fact that the beast was there gives the game world the complete feeling it needs.. and it doesn't feel like someone is trying to spoon the next level of space invaders down my throat. It's a world with animals and trees and stuff. Even someone like me can get some immersion with that since it's not a chore. Makes me want to look around the game world, too, believe it or not.
Sorry if that was a ramble. Here's the point- Morrowind's fast travel system worked well for the way that game was made. Oblivion's worked well for the way it was made.
The one thing I can say for sure is that any "fast travel" had better fit the way the game is made. It's not always about a preferred style, but how it keeps the game going for you. If Oblivion had wound up with Morrowind's fast travel system, yet had the same "everything levels" system, it would probably be collecting dust on the shelf already.
The one thing I'd personally request is that we actually make the common roads free of enemies this time. Give me a chance to actually ride my horse around for a little while without having to get off to whack something every few minutes. Sure, let it happen every now and then. After all, it's a world with wild animals. Every few minutes? Turns horse riding into a chore. Currently, I just run around with my weapon at the ready. 'Least I don't have to always climb on and off something. Maybe I'm just too impatient. Fast travel, foot travel or horse travel.. it all needs to work in it's own way.