What is everyone looking forward to the most in the new engine?
Me:
Faster loading times. Right now I sometimes cheat to avoid dying, just because reloading takes forever. Even with 4 GB of ram. First it has to clear data, then reload data, then load area... Whereas Oblivion's reloading is pretty much instant for me if I reload in the same cell I was already in. I don't think I have any game that reloads slower than Morrowind, old or new.
Better performance. Morrowind was just badly optimized. Also the dialogue slows down A LOT once you've talked to many people. For me it takes 2 seconds for the game to load a topic/greeting, whereas it instantly pops up when I just started.
Stability. I'm still getting quite some CTDs.
Improved graphics, unlimited modding capabilities and all that other stuff is nice. Very nice. But I'm especially looking forward to the above improvements