Hell. I can't believe you actually dare to say that things were different in Daggerfall and use that to defend Oblivion. Daggerfall might have had a generic setting, it didn't have a paper thin plot with huge holes in it.
But I'm not referring to the plot. The Daggerfall - Redguard timeslot is when most of the "foreign" cultures of Tamriel were flushed out, and I am simply saying that things were still quite "standard" in regards to visitable environments during the early years of The Elder Scrolls Series.
As unique as Morrowind is both to its domestic cultures and its insight to the other provinces, and even if the generic Gamebryo cities of painful HDR and automated-tree-generated forests contradict the more rain forest-esque ecosystem set for Cyrodiil in the Pocket Guides, it cannot be used as a guideline for the rest of Tamriel. Its concepts of variety are welcomed, but there are ways to make a place as unique as Morrowind without overdoing it.