I think it would be awesome to see a Bethesda put a Morrowind download on XBL or PSN. This way everyone preparing for Skyrim can replay through Morrowind on their Xbox 360's/Playstation 3's and catch up on some lore. Just a random thought though.

Morrowind does work on the Xbox 360 already.

It doesn't seem likely that they'll be releasing it like this anytime soon. The game is still widely available.
You can still find copies of in stores and online, Steam and Impulse also have it for sale.

It would be cool to have a HD version if it, like what they did with the Prince of Persia Series. It would also be cool to have it readily downloaded on PS or XBox for easy use. But it is true, Morrowind hasn't stopped selling hard copies yet. In some places, you can still get them brand new. I'm lucky in that I kept my old GOTY XBox copy, hoping and praying for the day it would become compatible. Thank you xbox.com. ^^

If you are going to play it on Xbox I advise playing it on the original xbox. The 360 has longer load times and a lot of random freezes and problems at least in my experience. But in any case I would really advise getting the PC version. They have never released a PlayStation version of it and I don't know if they will but it would be cool.

Actually I have to agree with you there. The PC version was the best. You could do so much much more in it. It was also smoother, less jumpy, and, as you mentioned about load times, the times on the PC are next to nothing. Damn I was I had my PC back.

It does play pretty well on 360. My experience is that I purchased 5 used copies via Amazon to get 2 copies that work well. The others got disc read errors of various sorts, though they would start and play.

Cannot speak about load times and such, but I do prefer the HDMI-quality graphics on my HD TV over the RCA-connection graphics. I would choose 360 over original Xbox just for that. And have, really.