I posted this in another thread, it's a little 3d model mockup of a what a higher looking Red Mt could look like.
http://www.sendspace.com/file/dt0tke
It's possible to put this heightmap or something similar ingame, but every single object in the area would need to be moved around to make it fit, which sounds like a lot of work.
if anyone was to start a resize project for morowind. i would be all over that like white on rice. doing that would mean we would be able to expand all the cities without destroying all the surounding terrain. and make the island of a grand scope it could have been. that would be totally awesome :rock:
It would be a massive project. I've considered doing something similar for Solstheim, as it wouldn't be as difficult to shift all the exterior locations (like towns and cave entrances) onto it. Vvardenfell however is just too huge, it would need to be mostly automated somehow.