This thread was inspired after reading about TESV Skyrim's UI for PC and the image that was made to address it. http://img3.imageshack.us/img3/5679/skyriminterface.jpg
I think the way you barter should be changed so that you can type in a number instead of the up/down arrows.
Perhaps make all the icons 3D objects instead.
I know I definitely want the character portrait screen to be vastly improved. Right now it's just a 3D frozen image of your character. I never look at it because the third person view in-game is much better. I'd like the character portrait in the menu screen to behave like it does in Oblivion, except with more freedom to look above and below your character at all angles.
DragonGeo2 is working on http://www.gamesas.com/index.php?/topic/1209177-wip-project-aedra/; an engine re-write. There is also the http://www.fliggerty.com/phpBB3/viewtopic.php?f=53&t=1008 mod, with which the team has done a wonderful job. Maybe some of these things will be implemented in the future.
I'm not a HUD expert and don't know all the details about making a great user-friendly & visually appealing user-interface. But I hope this thread will serve as a basis to give other modders ideas who are thinking or wanting to change Morrowind's UI and actually have the knowledge to do so. I'm just a simple modder. I don't do computer programming or any of that stuff.