Morrowind combat was good but the reason it failed was that the player had the same chances of making a succesfull hit, no matter who you fought.
They could fix it by giving enemy types different dodge chances, so powerfull creatures like Dremora could have like 66 % dodge chance, and a rat could have like 15 %. This means that small enemies like tats, mudcabs, imps and all those kinda creatures woul be easy to hit.
It didnt annoy me that I missed all the time, but it annoyd me that weak creatures was as easy to miss as the powerfull ones.
This would be great if you removed the unbelievable part that your weapon goes through the enemy and you still miss.
Higher level monsters should have higher level skills, like Dodge, Parry, Block, and use them better so you would miss them because of their greater skills, not of greater protection of being higher level.
And those skills should be seen in action.
Better armors should have their effect as well, so you might be able to hit them on the head, but that
huge horned helmet should decrease the damage a bit, but maybe it can become a bit askew?