I got a much more satisfying feeling of exploration from Oblivion than I did from Morrowind. IMO the fast travel networks and levitation
ruined exploration in Morrowind... the most efficient way to get around in that game is to buy transportation to the place that's closest to your objective and then levitate in a straight line towards it. At least if I want to get somewhere quickly in Oblivion, it just...
lets me, without making me do anything silly. When I explore Cyrodiil I actually feel motivated to do it, because I know that I'm going to be rewarded not only with whatever adventures I find, but also by being allowed to have quick access to the locations I might discover. There's some real gameplay incentive there, which Morrowind lacks. There's barely any incentive to explore Vvardenfell at all, considering the vast majority of locations you'll find
won't even get added to your map, let alone give you the option to quickly return to them like in Oblivion.
Now I'd like to address two of your points specifically, OP
I don't think Bethesda realizes that fast travel as a teleporting device and not being a part of the gameplay itself is in fact NOT a good thing. 1: Because it takes out a gameplay feature and replaces it with nothing.
They took out a gameplay feature and replaced it with a more useful gameplay feature. I would agree though that we probably should have both of these options, not one or the other, which is fortunately what they seem to be doing with Skyrim
2: Because it removes the feeling of attachment from your character, feeling the hardness and the journey your character is going through in a ROLE PLAYING game.
This is entirely subjective. I used fast travel
a lot in Oblivion (it would probably make some Morrowind fans blush) and I never felt disconnected from my character, rather the contrary. Fast travel is a tool that allows me to do whatever my character wants to... if my character wants to do a quest I can just do it, or if my character wants to fight some monsters I can quickly find a place I know has monsters. It allows me the freedom to do whatever I want, rather than forcing me to play "the game's way", which might sometimes might not line up with my (or my character's) interests.
Yes, I think there is an art to making Elder Scrolls games, but I don't think making the game tedious and complicated to navigate contributes anything to it's artistic integrity.