There is the excellent Oscuro's Oblivion Overhaul, which does away with levelled content and makes the game more consistent. I'd like to know if there is a similar mod for Morrowind. I'm not talking about the Sound & Graphics Overhaul, just to make it clear. Here's the link to Oscuro's Oblivion Overhaul: http://planetelderscrolls.gamespy.com/View.php?view=OblivionMods.Detail&id=3953
If no such mod exists for Morrowind, maybe our excellent modding community can get working on it.