I think Levitation should return in modified state like you float slightly above the ground and the high your rank the higher you float and dodge morrowinds levitation had many flaws you can just fly away and get attack by cliff racers or go to high and fall to your death.

I don't see the point in levitation if you're just going to float a few feet off the ground. I also don't see how or why levitation should have anything to do with dodging...
And in your post you made my own argument for why Morrowind's levitation should be the way it comes back. Yes, you can just fly away from combat but unless you're careful you will get to high and result in your early death. If I'm going to be limited on how high I can go I wouldn't use it.

Morrowind was doing it right, and if it returns, it should function exactly like it did in Morrowind

Nah, it should function better than it did in Morrowind. I mean, think of all the possible things you could do with a levitation spell, using it offensively, or defensively, or combining it with other spells. Lots of cool things could happen...

http://www.gamesas.com/index.php?/topic/1145436-tes-v-ideas-and-suggestions-187/

I fear that without open cities, enemies not understanding that you can also shoot arrows/spells to the sky and SpeedTree trees looking silly when viewed from top-down, we will not be seeing any Levitation.

Don't get me wrong though, I loved levitating over mountains and flying around (especially on my Daedric Glider) in TES3:Morrowind. I just don't think it will make a return, unless the engine (and sub-party software) can handle it and not make the game slow down to a crawl when getting close to a city or just looking silly when viewed from above.