This is another kind of game, a smart one and demands you to be smart too. It is freedom like no other, there are rules but you can break them. Not everything goes according to plan, that's the beauty of it. It doesn't revolve only around you, you are a part of the game world too. Its reactiveness, just amazing. Take the challenge and it will change as you progress and will change you.
I couldn't believe a game could be like this. Morrowind changed my opinion about games. You should treat it as a world, not a game.
Don't worry. When I first played it, this stuff happened to me too. The joke is not the bridge guy, it is the box. You have no idea but then again, everyone doesn't have the same experiences. I am curious about *your* dwemer puzzle box adventure. Mine took weeks and when I was out of that place, I was a badass.
I was not poisoned by Oblivion, fortunately. Morrowind was my first TES, or RPG to be exact. In Morrowind, my relative low power annoyed me and I decided to grind. Only when I looked around, I thought: (I'm citing, exactly, from ten years ago, word by word):
"Why would you grind in this game? It is filled with places to go, quests to do. All different, varying content. No need for grinding, just pursue what you want and let fate carry you. Explore."
And I did. Best gaming experience I have ever had. Common sense helped me a lot. It was really like a real world.
My first instinct was doing some quests for guilds, I think they are not too hard. Yes, my first encounter against rats was fatal but I felt the problem was rather me. After some creative thinking, I managed to deal with them and by the time I was at second quest, I was already getting more powerful than rats. It was how an experience would work. Second encounter with rats, very different from the first one. That's, progression.
Money comes, quests are really rewarding. Loot is also very rewarding when you take the risk. My MQ adventure had lots of sidetracking. It was an epic adventure, as in epic epic. You need to invest in this game, that's how it is. But it will be most rewarding.
It is a sandbox game, you will figure it out. Just treat it a bit more smarter than your average game.
Really, just go back to playing and come here 6 months later. We can talk then.