You might be surprised. While the average poly count is higher on Ob/FO3 meshes, it's not as much higher as you would expect. The biggest difference is in the architectural set-pieces. Rather than construct them of blocks, like Morrowind, the pieces are all in one mesh. Standard bits like furniture, clutter, etc. is about the same as near as I can tell. The total poly count in a cell is generally higher, as would be expected, but it's still not super-high. What is done, instead, is a much more thorough use of bump-mapping. Nearly every mesh has a standard texture, and a bump map. This gives the impression of a higher poly count without the sacrifice to frame rate.
That's true, actually, I'm sure the polygon count of meshes in Fallout 3 and Oblivion is higher than Morrowind, but mostly they look so much better due to lighting and shader effects not used in Morrowind.
Certainly, I'd say that a lot of Morrowind mods that introduce more detailed models have much larger meshes than those in Oblivion.
But in any case, as to the subject of the topic, I don't know of any replacers for things like architecture that use more detailed models, but if you want more detailed armor, a number of sets in the game are covered by the mods http://www.gamesas.com/index.php?/topic/1028129-better-armor-from-hedgehog-12/. Not every set is covered yet, but they do accomplish the goal of replacing the models in question with new meshes instead of just using new textures. And since there are different packs for each set you can choose only the ones you like.
As a whole, though, I suppose most modders find it easier to just make new textures, and a lot of those textures look very nice, but it's gotten to the point where no matter how sharp you make the textures, you can't diguise the fact that the models underneath are quite blocky and that the game's graphics are still very dated.