Oblivion has legions of flaws, but one thing it fixed that drove me insane in Morrowind was the cruddy ownership game mechanic (I knew what I could and couldn't touch most of the time), and since it is one element, that, if fixed, would eliminate a major realism and gameplay headache, I have some suggestions:

1. Morrowind Code Patch includes a fix that permanently turns on the ownership tag for items. Basically the console "tfh" command, except permanently on all the time, and if possible modified to hide scripting info (using the console command still works normally), and just show ownership. Note this is a partial fix to the overall problem, but would fix a large part of it.

2. Unofficial Morrowind Patch Project- Many items in the game are owned by ridiculous parties (like generic guards and random Npcs). It would be far more sensible to tag most items to a particular faction than people, and some items should probably be renamed to reflect their quest importance. That is, if this would be considered a fix.

3. If not, I propose a custom plugin be made to fix this issue, hopefully one not requiring external tools like MWSE.

Any opinions?

P.S.- A combination of one and two would probably be ideal to fix this concern.

Not a bad idea. I was always think how do I know if I can take something or not without having the guards beat me silly. It's hard to play as a true thief.

Requires MGE, but Yacoby made an ownership indicator that makes the crosshair turn red if the object is owned.