I think I can get around some of the refusal of service via creating a special greeting that says something like "...our beds for rent are currently being reserved by the owner nameid" which then leads to introducing the owner and moving my story along when they ask for beds to rent.
No, that won't work, because your publican would still talk about the topic "beds". Just do as cyran0 said and add a new line to the dialogue topic "beds", filter it for your publicans (e.g. by referreing to the Cell name) and have them say something like: "I'm sorry, but I don't rent beds. Go next door and ask nameid the landlord about it." Make sure that this line of dialogue is the first line of dialogue for that topic, so that it will be triggered.
In case you don't already know it, I recommend Srikandi's excellent http://tommyshideout.net/files/srikandi/DialogueTut/. It will greatly help you understand Morrowind dialogue.
The first rule of Morrowind dialogue:Always bear in mind that Morrowind reads its dialogue from the top to the bottom. Whichever line of dialogue meets an NPC's conditions first will be shown; everything further down the list will be omitted.
Example 1 for the topic "beds":First entry is filtered for Class "publican" and Cell "bhl hostel": "Hi there, all beds are rented."
Second entry is filtered for Class "publican" only: "Yes, we have a bed available. Do you want it?"
In this constellation, every publican in the Cell "bhl hostel" will tell you that all beds are rented. Every publican in any other Cell will offer you the bed.
Example 2 for the topic "beds":First entry is filtered for Class "publican" only: "Yes, we have a bed available. Do you want it?"
Second entry is filtered for Class "publican" and Cell "bhl hostel": "Hi there, all beds are rented."
In this constellation, every publican, including those in Cell "bhl hostel" will offer you the bed. Why? Because they are publicans, so the first entry's conditions apply. Morrowind won't even read the second entry anymore.
However i am still tempted to just create another class due to less verbal manouevering involved
I wouldn't do so. That leaves you with the ungrateful task of writing meaningless small talk for your new class.
It's a shame there is no simple way to just remove a topic from the individuals list without impacting all other NPC's of that class
As pointed out above, it's quite easy to
add a new line of dialogue to an existing topic and tweak its filtering a bit. Just make sure you don't
change standard dialogue.
That's the
Second rule of Morrowind dialogue (derived directly from rule no. 1):
Place dialogue entries for a single NPC or a small group of NPCs high in a topic and position the dialogue entries for a more common group of NPCs further down the list.