I want to look at the pros and cons of each game (and feel free to add to it, because most likely I won't get them all), and how this could ultimately help the creation of TES V. Keep in mind that a pro of one game could be a con of the other if they coincide and vice versa,
Morrowind
+Better story
+More diverse and mysterious landscape
+Better atmosphere
+Better/more creative enemies
+Seperation of power among great houses lead to variety in people's attitudes, and in cities/towns
+Better guilds
+Almost all NPC's have unique names
+Tons of readable books
+More weapons and armor, and harder to obtain/piece by piece
+Leveling system and many more skills
+Had to take transport, use spells, or walk, no fast travel. Seemed more real and fun.
+Better music
-Terrible combat system
-Dialogue system was boring
-NPC's don't acknowledge some acheivements, and contradict themselves often
-Bad sound effects (rain sounded like static)
-Cliff Racers (yes they do deserve their own minus)
-Reported crime although nobody is near
Oblivion
+Advanced graphics
+Better menues and quest organizer (although I liked the journal)
+Combat MUCH improved
+Bonuses for becoming leader of a guild
+Purchasing a house
+Physics
+Picking up fired arrows
+Magic more efficient and easy to use
+Dialogue gave NPC personality
+Sneak system
+NPC AI is advanced/schedules
+Chemistry between NPC's made it feel real world
-Crime reported although nobody around
-Game overall seemed too medieval
(which I believe is a bad thing because Morrowind made me feel submersed in a different world, but Oblivion just seemed set back in time)
-All cities are walled in, which seemed a little much. Who's to say what's a city and what's a town?
-Fast travel somewhat ruined desire to travel/explore
-little amount of weapons, most armor pieces could be found in one area to obtain a full suit
Now, what I think is, in TES V, the minuses of both sides need to be removed or canceled out. So overall, I believe these are the main problems with the games, as well as the good things about them. The problem with Oblivion is, I feel that most of its biggest +'s are stuff that would expect to be upgraded due to a new generation system.
In my opinion, if they were to remake Morrowind completely with upgraded graphics, combat, and all of Oblivion's pro's, it would be undoubtedly the best RPG ever. What I think would be a good idea personally (which actually could and would work) is to make a TES game on all of Morrowind. As probably all of you know, TES III took place on Vvardenfell, the center island in the province of Morrowind. If they made a game on all of Morrowind including the mainland, it would be the same large size as Cyrodiil, and would incude even more of the great houses (which I thought were a hugely great addition to the game), and the landscape of Vvardenfell.
So let me know what you guys think, add your opinions.