....to set my melee weapon level(s) to 50 because I can not stand hit or miss system based on your level.

Does anyone else do this? (OR at least used to do it when they first started playing?)

I just get sick of being killed by rats while trying to join the Morag Tong.

I use COC to fast travel to places because it's easier.

I also use AI commands to "rescue" prisoners and to make the guards hostile as a challenge.

I do not. The feeling of deep satisfaction when my character begins to hit is one of the very best things about Morrowind. In the later games a character hits as often and as easily at level 1 as at level 50. I feel no sense of accomplishment. I feel little sense of character progression. In the later games we might as well be playing a first-person shooter.

I admit that the later games can be fun in a kinetic, adrenaline-fueled, arcade sort of way. But I miss that old-school roleplaying feeling of accomplishment I get from Morrowind's combat.

Most of my character start with a few bonus potions...
player->additem "p_restore_health_q" 2
player->additem "p_restore_fatigue_q" 2

Usually just to survive the first assassin attack.

I don't think it's cheating, because it's my game

I never use COC though. I don't mind traveling.

The only console command I use with any regularity is RA (Reset Actors), to put NPCs where they belong when they wander into inconvenient locations, like the middle of a doorway. I don't remember ever giving my character an advantage with the console. It's not a hard game; it just requires a bit of patience as a character develops skills.

If you chose a Redguard with major skill of Longblade, then that would start at 50. The Warrior birthsign would give you an additional boost and the Redguard racial ability is really good.

The most I use the console to do is reset stuck NPC's. I max out my characters and pay close attention to what they're doing so that I don't get the frustration of seeing them die.

I too use reset actors occasionally, although many times I will use http://abitoftaste.altervista.org/morrowind/index.php?option=content&Itemid=10&task=viewpost&id=7&-Take-my-place by Abot if it is just that someone is blocking my way in a small corridor as that 'feels' better to me.

I tend to use mods to start at about level 10 or so--Morrowind is just too tedious at the lowest levels to be fun, and it's really not difficult to work up a backstory to justify a higher level.

You know, if there were mods which adds greater transport links in Vvardenfell and the TR mainland, I may not use COC anymore. I'm sure they do exist but I'm not sure about the names.

Besides "RA" to put the wandering or lost NPCs back to their starting locations, I occasionally use a pair of commands to deactivate and remove collision on unwanted broken glass and fallen furniture that gets in my way when I start adding MC-crafted tables and chairs, etc. Can't have the place looking like someone fought a war in there , in case guests show up.