I love it, everything looks beautiful, nothing seems to conflict (I use no Balmora mods), and I didn't experience an FPS hit at all. Here's a screen shot with my view distance pushed to the max using FPS OPT:
http://i252.photobucket.com/albums/hh23/bycote1/MGEScreenshot1-2.jpg
The Hlaalu textures I use are old-school Darker Morrowind. They've always been some of my favorite textures added by this texture pack, but now I like them even more since their dirtiness and grunge fits in so well with the new Balmora. :^)
Now I have a suggestion that I think would make the ambiance added by this mod much more powerful and immersing - add the Bitter Coast atmospheric sound effects to Balmora! If, for example, the official Bethesda Bitter Coast Sounds mod could somehow be expanded to affect Balmora, that would be awesome. Of course, I know this is far easier said than done - does anyone know if it is even possible?
edit - screen shot corrected