I've been playing TES games since Daggerfall, which I absolutely loved. In fact, as much as I love Morrowind, I felt there was a lot removed from Daggerfall when MW first came out. I missed mounts (horses), banks and buying real-estate, the old "guard me from an assassin" missions, and much more. However, The Elder Scrolls Morrowind is the greatest game in the history of the universe. me in so completely that I'm still modding for it.
That said, Morrowind had some serious issues even when it was new. The character models were awful, even by the standards of the day; the combat system was absurdly bad; and the stock textures were hideous. And yet, the game transcended all of that. I'm not sure if it was the gravelly voices of the Dunmer, the political and religious intrigue, the Dwemer ruins and lore, or what - but somehow, the game just worked.
I, too, wanted to like Oblivion. It is graphically stunning, and a significant improvement in almost every technical way over Morrowind. As a modder, I know MW's limitations almost by heart, and they are many. Most of those problems were solved in Oblivion. Ground textures blended a lot better, you could have variable water levels, NPC's could follow you through load doors, etc.
However, the game felt like it had no soul. It was bland, and in many ways, not terribly interesting. Perhaps it picks up, but I never got far before leaving it entirely, and going back to Morrowind.
I dunno, Skyrim looks awfully nice. However, I'm going to reserve enthusiasm until I actually play it. THEN, I will figure out how I feel about the game.