On PC there is no way to play Morrowind from steam, there is no controller support? How are we supposed to play the game if it has no controller support? Console versions have controller support so it seems to work in the game but it isnt in the PC version? Can this be fixed or is support terminated for Morrowind because its to old?

Nothing is broken. Morrowind and Oblivion just do not natively support controller input.
It was only designed for mouse and keyboard.

You need to use a program like Joytokey or Xpadder to map the controller yourself, and then it will work.
There are some threads here that help with some of the details.... http://www.gamesas.com/topic/781497-vistawindows-7-problems/?p=15991192