no. most of it is an ashen wasteland with no people, but the land itself is still there.
I'd imagine that's pretty close, in time, some hardy plants and animals will likely return to it, and in time, I'm sure it will be settled once again, but for now, for all intents and purposes, it's a wasteland.
I'd certainly hope not, the Argonians overstayed their welcome. Their "revenge" cannot justify that they killed or drove thousands of innocents from Morrowind. It was enough punishment to have the Ministry of Truth fall from the sky, there was no justice in their invasion. And if they do colonize Morrowind, I hope it's a option to drive them back and return the Dunmer to their ancestral home.
After their people had suffered so much due to slavery, I'm sure "justice" was not what they were looking for, it would be closer to revenge. They should have just finished the job, though, those Dunmer had it coming.
If I were the Hist, though, I'd stay away from Morrowind, before or after it went boom, most of that place is just inhospitable volcanic wasteland anyway, really, I'm sure the only reason the Empire ever wanted it was for the ebony and glass.
Why Vivec... Why didn't you use Damage Speed 100 PTS on Target instead of Paralyze on target for 3 Eras? YOU FOOL!
Damage speed isn't going to stop gravity from working, in other words, the moon would still fall no matter what spell is used, and judging from what happened, still maintain all of its velocity. In reptrospect, Vivec probably should have just blasted it into little pieces of rock, or sent it back to where it came from, but I guess he didn't quite think that through far enough.