I was looking up skyrim, and I thought that the way skyrim handles the elemental attacks, is very well done. It has fire attacks doing more damage, frost attacks slowing you down a little, and lightning drains magicka a little. this would be a fantastic gameplay element in morrowind. There are many ideas from skyrim that could be used to make combat more tactical and interesting. Are there any mods that do something like this, or any that are being made.

I suggest reading the skyrim article on building better combat.
http://www.gameinformer.com/b/features/archive/2011/01/24/skyrim-building-better-combat.aspx
There are many great ideas.

Have you seen http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=8822? (lots of huge scripted spells unlike anything you've seen before)
Or http://www.youtube.com/watch?v=MQD8lLbRUsE&feature=related? (finishing moves, and bullet-time)

But I don't think we've seen enough of Skyrim combat/magic to start building a mod based directly on it.

You may want to avoid CE. It requires MWE, and that will make your saves unstable.