Supposedly TES III was to be set in the Summerset Isles and called Tribunal. To me, this makes no sense..

I also heard that it was also supposed to be named Oblivion.. which I also do not understand.

Basically these rumours blew my mind. It's crazy to think of how different the story could have gone, if going by these scrapped titles.

You should realize that these names for Morrowind predate much of the Lore we now know.
Considering that, none of it is shocking or weird at all.... It just would have been different settings than Vvardenfell.

You know, it kind of bothers me how the game is called "Morrowind", not "Vvardenfell". I mean, the expansions only kindof make up for it, but Tribunal is set in an interior cell, and Bloodmoon is an island that (in total) belongs to no-one. Good thing the TR team is making up where Bethesda left behind: the actual mainland.