As for the topic. If you can get past the graphics, they're definitely worth a try IMO. Daggerfall is worth playing just for the experience IMO. To see how high they were aiming. One may look through the faults and it has many (the weird dungeons that can take you hours to navigate, the randomly generated quests, the generated world, broken skills etc), but I've never seen a project that aimed so big. All the things they tried to put in there, all the customization option, the huge map that, even though generated, really make the world feel big, all the different kingdoms, the chances of becoming werewolf or vampire, the main quest that really allowed you (in fact, pretty much required you) to roam and build your character before you can tackle it and didn't shove itself in your face. Daggerfall was had plenty of mistakes in the implementation, but the scope it was aiming for was amazing..
I second that.
Daggerfall is EPIC.
On a marginally related side-note, the only other game I'm aware of that is comparable to Daggerfall in sheer grandeur and aim is Dwarf Fortress. And they both are abbreviated DF, which makes it hard to talk about them simultaneously and quickly sometimes.