So, Morrowind is half price on the Steam sale. I've heard MGE has issues with Steam? And what about Morrowind Code Patch? Are these resolvable? I've already got Morrowind on disc but it's at home and it's quite frankly a pain having to always have the disc in the disc drive.

The only issue with steam is that you have to turn off the overlay because it conflicts with mge. Easy to fix, takes about two seconds in the setting. Other than steam's unique install location, there isn't really anything different about the steam version.
I have played extensively on the steam cersion. It used to be you couldn't use the construction kit with it, but that has been fixed by a modder.

I am running the Morrowind Overhaul package on my Steam based install of Morrowind. That includes MGE.

Other than the Graphics Extender, the Steam Based game works just fine with mods. As stated above, MGE can be worked around.

The only issue I ever ran into was mods that come with installers. Those want to put things in the stock directory. Even that can be worked with unless the installer modifies the ini file. Just let the installer put the files into the stock directory (which is should create if it does not exist) then move the extracted files into the game directory.

My wallet doesn't like this news lol. But thanks for your replies .

One thing worth mentioning...
Some mods won't work right until you redate the BSA files. Steam has them set a recent date, but they need to be the original dates.
Luckily, the Code Patch (and the MSGO) will do it for you when you apply it.

Steam version is currently on sale for half price. If you want it, now's the time. (sale ends tomorrow)
edit: oh I see that was mentioned in OP.