Morrowind is an ancient game. It is quite literally from another time. A remaster (not a remake) would have the same clunky combat mechanics and no new comer would enjoy it.
Take off your rose tinted goggles and realize this fact. YOU, the Morrowind elite fan might be okay with it, but the masses would not. Therefore it'd be a huge financial failure in terms of sales and no developer is going to do that, if they're smart.