So I finally decided to publish my take on releveling Morrowind, and I present http://www.nexusmods.com/morrowind/mods/44384/?.
This project started when I became frustrated at not being able to hunt dreugh before level 5 or storm atronachs before level 14 or whatever. I also didn't like how Seyda Need went from a peaceful idyllic locale with sleepy mudcrabs and an occasional rat or kwama to a cliff racer and blight infested cesspool just because your character leveled a bit.
There are some existing mods that completely delevel Morrowind, but that was not what I was after either. I wanted some leveling, but I wanted it to be much more subtle than vanilla Morrowind.
This mod aims to address these issues by releveling the world to prevent the changes in the creatures you encounter as you level from being so obvious, while allowing you a chance to encounter even the hardest creatures at low level if you hunt for them. You will never encounter a daedra in Seyda Neen or any other creature that would be out of place there. This mod does not change the locations you can encounter creatures, only the level you encounter them.
This mod does make the game harder at lower level, and areas like tombs and daedra shrines are now the dangerous places you are warned about.
This mod unlevels loot lists completely, but does not unlevel creature lists. So, this mod is different from mods that completely unlevel Morrowind. Creature lists are still leveled, so as your character increases in level, they will encounter fewer low level creatures and more high level creatures. But the world is much harder and more diverse at lower levels, and gets marginally more difficult as you level, instead of starting easy and getting a lot more difficult (vanilla) or being completely unlevelled (Morrowind Deleveled).
The number of cliff racers you will encounter has been significantly decreased at all levels.
The creature lists from Bloodmoon and Tribunal have not been altered, but loot lists have been unleveled. All loot lists that were unleveled (Morrowind, Tribunal and Bloodmoon) have been adjusted to reduce the probability of finding the best loot. This means at lower levels you may have a better chance of finding better loot than vanilla (if you can defeat the tougher enemies) but higher level characters may need to look harder to find the best loot and will still come across a significant amount of junk loot.
Compatibility: Should be compatible with pretty much anything except mods that do the same thing by deleveling or releveling Morrowind. If using with other mods that alter leveled lists, load this mod after any other mods that alter leveled lists and use a leveled list merger (TES3CMD, or Wrye Mash).
Please report any issues. Thanks much.