Let me start this thread by saying that my machine is almost 10 years old. So yes, the optimal solution for the question I have yet to ask is that I should replace my machine -- an endeavor I cannot currently complete due to lack of funds.

So my question: Is there a way to play Morrowind without requiring the CD? My machine's CD Drive is tempermental and will sometimes refuse to read my Morrowind Disc. This leads me to the hassle of having to eject then insert the disc several times until my disc drive discovers that it has a CD to read.

Back in the day, I used to play Diablo II without a CD using Daimon Tools, which involved copy-pasting some files from the disc into the D2 directory and mounting a fake drive with Daimon Tools. Is there a similar method to that? Is there any method?

The only way is to buy the game from Steam.

Using Daimon Tools is not something we want to have discussed here as it bypasses the copyprotection of the games :nono:

A side note to save a little wear and tear on your dying drive, once the game starts, you can remove the cd and let the drive spin down. The copy protection is only checked at start up.