I did just do a full playthrough to level 40 on vanilla, and I still found it super fun.
But now I play it with like 3 mods. (all of which are very minor game changes)
I use Real Time Silt Striders/boats (something that should be in vanilla anyway, this one is a must have IMO). Being able to ride silt striders and boats in real time, and being able to bail out at any time during your trip or skip it is completely badass. (much like taking the coach in Red dead Redemption, or the taxi in grand theft auto 4) Quick way to get to some places, like Bal Isra the Redoran stronghold. If you take a silt strider from ald ruhn to either gnisis or mar gaan, it goes right through the redoran stronghold, so you can take a silt strider right to your house basically.
More Red mountain. All it does is make Red mountain about 1.6 times taller, leaving everything else in the same spot, only higher. This made red mountain feel badass and more like a mountain.
And last but not least, I use MGE just for the distant land. I like being able to see pretty far (though not the whole island). Especially after 10 years of playing the game with constant fog, its nice to get a sight of Morrowind, but also still have foggy days where you cant see very far.
Heres two cool screenshots I like that I took myself. This one is a sight of http://imageshack.us/f/850/mgescreenshot004.png/
And this one is the http://img706.imageshack.us/img706/3878/mgescreenshot001z.png (this picture also has a mod that adds grass like oblivion/skyrim in some places in Morrowind - only the ones that would make sense to have grass)
But as a general rule of thumb, I don't use any texture mods or graphic mods (besides MGE, but I don't even use it for better graphics, just for further sight). I highly dislike Better bodies and Better heads, and any mod that adds in half naked Japanese Anime dark elves with giant big blue sparkly eyes.