As far as melee fighting goes, I think that neither Oblivion's nor Morrowind's system is perfect. However, I think that Morrowind's is highly supperior. Its flaws are more or less cosmetic, like the lack of propper annimations whereas the flaws of Oblivion's system are in its core itself. In Oblivion I espcially do not like the fact that you can substitute skill with a weapon by the quality of a weapon. So, if you svck in a weapon skill, getting a better weapon would compensate for this. In Morrowind you can have the most deadly and badass weapon available, but if you lack the skill to use it, you are done for. That sounds more realistic then Oblivion's symplification of combat
The only thing that really bothered me about Morrowind's system is that unlike with the amgic system you could not go for a more secure less efficient attack. Let me explain. With magic, you could choose whther you will use high risk-high reward spells, i.e. spells that do a lot of damage, but are likely to fail, or if you go the path of weaker, reliable spells. In melee combat you did not have this possibility. I'm not sure how to implement it really, but it would be nice if you could choose how difficult your movement will be. Perhaps by how long you will hold the attacking button. If you just jab with your weapon, only clicking the attacking key, you would have a high chance for success, but you would do little damage. The longer you hold the button, the stronge, but also more difficult the attack is. It would be nice to have some on screen indicator telling you how likely you are to fail as you hold down the attack key. Of coruse this is just a quick thought and would require a lot of work to be put into it to make a it a viable possibility, but it might work in some way.
As far as magic system goes, I guess that for its time Morrowind's system is totally perfect. Of course, now we would expect richer effects, more physics manipulation and so on, but again, these are just cosmethics again, however important
What about something like DA:O's Combat system, minus the RTS aspects like pausing and selecting special attacks at the bottom of the screen?
Who knows, Bethesda could have made things a lot better, I think we just have to trust them on this one.
Not only DA:O. All oldschool RPGs had this kind of combat and I love it. It would be nice if you could pause the game and have time to plan an select the porpper action you wish to do. For this, I'm very geratful taht at leat the game is paused when I enter the inventory. If nothing else, I hope that Beth retains this feature.