I think overhaul is pretty mandatory, but what about content mods?

Tamriel rebuild, morrowind comes alive, living cities of vvardenfell, Vivec expansion - these catched my attention.

Other than the Morrowind Patch Project and the Morrowind Code Patch, I'd keep gameplay "vanilla" until you've seen enough of the game to know what you want to change, and how. The graphics overhaul package includes both patches, so you're covered.

Eventually, if you ever run low on fresh content (I haven't "run out" after more than a decade), the Tamriel Rebuilt mod adds some very well done sections of the mainland, and is highly recommended, but you've got more than enough on your plate now.

Morrowind Comes Alive adds a lot of extra NPCs, including a LOT of higher-level nasty opponents (which you are probably not familiar enough with the game mechanics and options to deal with, yet). I prefer Starfires NPC Additions, which is quite a bit less "aggressive" and doesn't flood the game with high-level NPCs and their often overpowered equipment at low level.

The LGNPC series of mods adds a lot of unique dialog to various NPCs, and is great for "flavor", but I'd hold off for a little while until you have some feel for the original, in order to judge the content in the mods.

Eventually, I'd also suggest a leveling mod: either Galsiah's Character Development (which gives "specialized" characters both more powerful strengths and more glaring weaknesses) or the less drastic MADD Leveler (which I prefer for mixed-class characters).