What I noticed so far.
1. You actually HAVE to use your map, including local map.
2. The world in general suddenly feels more dangerous because you can't see enemies using the compass nor can you quickly escape, this is especially true with dragons.
3. Horses suddenly become important and useful.
4. It has a small sense of Nostalgia.
I'll probably keep my game like this, I have been wondering if anyone else has tried this, while I don't disapprove of the fast travel or compass, removing both has given me a sense of nostalgia from the Morrowind days coupled with an increase in difficulty and added extra value to the game by using features that would probably have been ignored for the most part had I used Compass and Fast Travel.
Don't get me wrong, this isn't a round about way of saying Morrowind is a better game, I'd rather avoid getting into that whole debate, this is just a Nostalgia trip for myself while enjoying everything Skyrim has to offer.