Because there is a reason we see Dark Elf in Skyrim and heavily near the border because Morrowind is not livable anymore.
I think that is a pretty good reason for not being able to see much in Morrowind.

I would rather put my money on the homeland of Khajiit, tropical, sandy place. Sounds alot different from Skyrim, nice expansion I would say.

Vvardenfell isn't livable anymore. The lore doesn't say anything and the western mainland or Bloodmoon

Research your lore before making a thread like this. It's mostly occupied by Argonians now, the Dark Elfs were driven out. Most of Morrowind is still inhabitable.

Some Dunmer mention returning hope so presumably the entire region isn't unlivable.