Nobody really suggests Morrowind be used as the benchmark. The generic dialogue was simply too much of a deal breaker (which is, if i may venture a guess, why people of the 100% voiced side of the debate pretend to think we of the other side want it to be just like Morrowind. Artful Dodging and obfuscation tactics 101.)
Perhaps Baldur's Gate 2 and Planescape: Torment should be used as the benchmarks, instead.
Normally, I roll my eyes at these "complexity" threads, but I think the OP is spot on.
So many digital RPG players were introduced to the genre through things like FFVII for a certain generation... or Dragon Warrior, Final Fantasy, and Zelda for the NES crowd, or even Wizardry, Gold-Box D&D, and Bard's Tale for others. In my opinion, those games took place in a stereotypical "role-playing D&D-type" world and were thus labelled "role-playing games," when, again in my opinion, they were anything but.
The first computer games I played where I actually felt like I was role-playing again were the Ultima Underworld and Baldur's Gate series. In fact, I bought a 360 when I stumbled upon the hype for Oblivion and I thought, "Sweet sassy, mollassy... that looks like Ultima Underworld on steroids!" In many ways, I was pleased, but in many ways, it also seemed like a shallower experience.
I think the character creation in Skyrim was a huge step in the right direction... now I just wish my "more organic" character could have more choice in person-to-person interaction and the means to get from point A to point B, and I think more text based dialogue would be another step in the right direction, even if it is a step backwards.
For the person who introduced the interview from the developer who suggested as much, thanks. That was well put.