Of course Bethesda was inspired by real life, the influences are pretty clear in Oblivion, less so in Morrowind, but I can't think of any work of fantasy that never had even one thing in it that resembled real life.
As for the clear difference between Oblivion and Morrowind, it's quite natural that they would look different, since Morrowind is set on an island in the eastern province of Morrowind, with a primary population of Dunmer, a race of elves with very different history and culture from Imperials who make up the dominant population in Cyrodiil. It should naturally look different, that doesn't mean Cyrodiil couldn't have still been quite interesting and creatively designed while still not making it look like Morrowind, and in fact, if it had stayed true to how it was suggested to look in lore before Oblivion, it would have, but I guess Bethesda just decided they wanted to make a game set in Generic Fantasy Land.
I always found this funny. Cheydinhal is supposed to be Dunmer influenced, but the only Morrowind architecture it even faintly resembled were the Imperial-built colonies. Ironic, no?
I always found that odd, myself, then again, it might be explained by the fact that we never saw a large portion of Morrowind, and perhaps on the mainland, some places have archetecture resembling Cheydinhal. While it might make sense from a lore stand point, it still is not a very good explanation to use, since when players here "Dark Elf archetecture", they would generally think of some form of Dunmer archetecture they saw in Morrowind, at least those who play it would, yet Cheydinhal has nothing to that effect.