Ok now Im not going to talk about the dungeons in Morrowind here in case others haven't played it, but, does everyone remember that very first Ayleid (oops spelling) ruin right when you exited the sewers at the start of the game? Ok so you killed those bandits outside, then go into the ruin. You find that there are more bandits camped down there. You go into their leader's quarters and find a note with their plans to rob people on the highway outside, but that there are noises scaring them coming from lower in the ruins. You go down their, explore, fight undead, and find a necromancer who has been creating the undead, and then read his note about how he fled Morrowind when the mages guild outlawed necromancy. Not quest found here, just pure self exploration, which made me feel as if the whole open world thing had so many possibilities to see etc etc. Then I learn that that was the only non quest dungeon like this.
So what I am saying is that I would rather have a few of these types of dungeons than 1000s of the kind found in oblivion