Yeah, I'd go with Turia, animations were the only actually inferior aspect of the game. Graphics are a tad lower than some of the games that came at similar time, but there's two things that have to be taken into consideration. One is reality- how big a game is is definitely a poor explanation for bad graphics, but how open a game is is a different story. Majority of the games that came at the same (or close to the) time as Morrowind were games with completely fixed or semi fixed cameras, linear passages, etc. That means there's only so much info that machine has to read, run, and render. In Morrowind NPCs, for the start, have so much more info than majority of NPCs in most games, even today. And then there's all the scenery that you can view from every angle, and above, thanks to levitation, so no model can exist only on one side, it has to be visible from every direction a player can approach from.
And then there's a 2nd thing to consider - first person view. Everything looks like [censored] when you get to stick your face into it. In all the games I mentioned above, that feature fixed or semi-fixed cameras you're watching scenery from afar, and floor texture looks fantastic, but if you'd get to see it from perspective of your character, you'd probably be shocked by how horrible it looks.