There should be a skill for navigating (credit can go to http://www.gamesas.com/index.php?/topic/1150201-my-fast-travel-system/). Now, what I didn't like about his proposed method was the fact that you had to revisit a certain place multiple times, so I thought about it and came up with a compromise. You can see my posts on his thread but I'm going to sum it all up here for you.
Having a radius that surrounds the player, the player is restricted to fast traveling to areas within that radius. The lower your level the smaller the radius, the higher your level the larger the radius. However, I don't think the radius should get too big, maybe not even big enough to cover 1/5 the map at the highest possible level. The reason I don't want it to be too big is because I want this to only be there to aid you in traveling to a city that has a service such as mages guild teleporters to take you across the map. Or if you just traveled somewhere using a service and you only need to walk a very very short distance you could use your fast travel. To increase your navigation skill level in fast travel all you do is simply fast travel. I do see a problem with that, too, though. So a cool-off timer to avoid spamming fast travels would discourage useless travels and grinding.
This would keep the Morrowind fast travel alive but also put a new spin on traveling short distances. It would encourage you to use the Morrowind style services to fast travel but still have the option to manually navigate your way to a nearby area (which you have discovered).
Hopefully you've read the entire post before voting, so you can now vote. If you think this is stupid and won't work, a simple no and an explanation will suffice. If you think it needs tweaking, provide a sufficient explanation as to which parts need changed and how in your post. Thanks for reading