I've been following OpenMW for a while, and it is quite promising. Morrowind is a beautiful game, but it has more bugs than a roach motel. Getting a more stable platform, with a better/less buggy render engine, that can/will be actively maintained, is an exciting prospect. With periodic updates to the engine, it could allow Morrowind to (more or less) live forever. With all the TR stuff, combined with the other province projects, it's quite possible that the modding community could create their own TES V - but with the whole continent!
That said, it's a huge project. I certainly don't want to dampen anyone's enthusiasm, but Bethesda has the benefit of a real development budget, skilled coders, and I suspect technical support for the third party stuff. I really hope these guys can pull this off, but I have to admit that I'm a bit skeptical. I will admit that simply recreating the engine is only a small portion of the entire game, though. They aren't tackling any of the art or music resources, so perhaps it's doable.
I'll be the first to admit that my prognosticating abilities are fairly poor, though. For example, I never thought this whole Linux thing would overtake BSD UNIX...
PS - I would hope that the OpenMW team takes a look at all the stuff in the Morrowind Code Patch - and fixes all of that stuff from the get-go...