It's possible to utilize DX10 all of the sudden? I've learned that getting DX10 in either Morrowind and Oblivion isn't possible.
You're right, as one is a DX8 and the other is DX9 games. But I was talking about MGE. MGE's distant land is an engine by itself. It is not restricted by Morrowind's engine. Lately it started to cross the border to Morrowind's rendering area with grass mods. Soon trees and underwater flora will be MGE's render.
Statics can be rendered by MGE but that would be a lot of work, and it will break the blending for old graphic NPCs vs cone-relief mapping statics.
That won't happen, regardless of how much I want it.
My expectation is soon we will have shadows. The distant land has the data we want to project as shadows and creating a light perspective camera within MGE(distant land should be possible) and projecting shadows can be possible.
The plans are toward dropping SM 2.0 support. A game can be a DX9-DX10 mixture, like Crysis, Bioshock, GoW... I assume if it happens, it will be like that.
DX10 is just a rearrangement of traditional engine inner works and introduces geometry shaders. It would be unrealistic to want DX10 goodies from modders, when even professional game developers don't know what to do with it. But now there are plenty of papers and I for myself, am very interested in geometry shaders and GPU physics. Special magic fx with 1000000 particles via GPU. Why not?
MGE's rendering is completely unique, the need for creating distant land data and it's own engine to render it, lets perfect reflections, and I think it can let shadows too in unique way for MGE.
PS. DX10 for MGE is pure speculation of a fan, me!