Please tell me LeFay was head of the Morrowind project...
No, IIRC.
Hm. I have never played DF, but its not that difficult to inform oneself about it, and it seems to have some interesting concepts. Still, I think the main change MW made (from randomly generated terrain to set terrain in a miniaturised world) was necessary. With rising tech levels, randomly generated generic dungeons just wouldnt cut it anymore. Hence I say Morrowind for the first question.
The second, err - OB wasnt as bad to be considered least good. I mean, at least it did have some good quest lines. Arena - well, I havent played that either , but it just seems - well, not bad per se, just... primitive. Underdevelopped. Hence that.
As for the third question, Howards having said that creativity and originality are BAD things pretty much settles the question in favour of Julian.