This. It is definitely babying the player. Also when I say "it destroys every ounce of discovery" that's not an opinion, that's a fact. You may not believe it, but how it following a compass marker to a ruin discovering it? You can't discover something you already know is there. As far as Morrowind's local map goes, I can't really say for sure because I don't quite remember, but I can almost say for a fact the markers on Morrowind's map didn't baby/hand hold little children as much as Oblivion did. Unless you're confusing what I am calling local map. Local map as in the detailed close up map, not the world map that shows the entire location(those map markers are fine and even encouraged as long as they don't show you where everything is)
This is one of my fondest memories from morrowind as well. I loved checking the map for secrets. It even had red x's to mark certain locations, and when I was at a high enough level to reach them I would.