First, you should ask this in the Mods forum, rather than Morrowind General Discussion.
Second, aside from the Morrowind Patch Project (which replaces the Unofficial Patch) and the Morrowind Code Patch (which fixes things that were immune to fixing through the Construction Set and conventional methods), I would recommend a global graphics replacer such as Visual Packs, and a body replacer like Better Bodies, as starting points. You can add specific replacers later. Just be aware that each of them will overwrite those current textures as you add it, so if you add something that wipes out a texture you like, it may be difficult to undo the change without reinstalling everything in the same order. Previewing the new textures before you add them can help avoid unwanted "surprises" of that sort.
MGE's "distant land" settings can boost your viewing range so you can see Red Mountain in the distance, or all the way to Solstheim if you want. I prefer limiting "fog" to about 6 cells maximum, to avoid having the entire gameworld look like a tabletop train layout from any high vantage point. That maintains the sense of mystery without making it look like you're stuck in a London haze all the time.
As for gameplay mods, it's pretty much all up to you. There are combat mechanic and magicka overhauls, there are a number of mods to add more or different NPCs or creatures, there are all sorts of armor, weapon, and clothing mods, and there are "realism" mods to add eating and drinking, plus "crafting" mods to allow you to make your own weapons, armor, furniture, clutter items, a good aquatic life and fishing mod, and just about anything else you can think of. What are you interested in? There's so much available that it's like walking into a bookstore and asking "can you recommend a good book?"