BUT, most of what you're saying here just because of your own nostalgia, friend. If Morrowind had crafting back then and now Skyrim came out and the only way to get good gear was from item hunting, I bet you'd be complaining for the opposite reasons you are now.
This!
I love Morrowind to death (it's my second favorite of the series), but most of my good feelings towards it come from the fond memories I have of exploring a crypt for the first time or hearing the theme song at the title screen.
NOT because the game was superior in story or mechanics. The Elder Scrolls have always suffered from hammy stories and they probably always will -- it's part of the charm if you think about it for a second.
Remember to look past those rosy shades, dude.