If it's about the items, then you're playing the Telvanni for all the wrong reasons. Same goes for the Redoran. It's not about doing quests to get loot. It's about being an honorable defender of Morrowind, or a mad amoral wizard.
I usually take all my loot and chuck it in a bin if it's ugly, or display it somewhere if it actually looks unique and interesting. Who needs loot when you're a powerful mage lord? All my best stuff I enchanted myself. Having an ebony staff to enchant is nice of course.
Oh, but I do use Aryon's Dominator. How else am I going to drag all the npcs I've turned into rocks to my tower to make a nice rock garden? (Call that overrated!
Ok, you actually need to download UL to get a magical dingus that turns npcs into rocks though, and you have to be Telvanni...and before anyone argues that that's OP, it's just a powerful illusion spell. They look like rocks, but they can still do stuff...like kill you, and their disposition drops significantly, so if they already don't like you, they just might try).