I hated Morrowind for not being Daggerfall II just like how I hated Oblivion not being Morrowind 2.0. Thing is I love Oblivion, but I love Morrowind even more. Thing is after Daggerfall, the TES games have been dumbed down ever since. All TES games are great and I love them even though they are "dumbed down" "steamlined" "less complicated".
Morrowind was tough. No compass, no hand holding. When you completed a quest, you actually felt you accomplished something because you were not told were to go. For it's time Morrowind had the best graphics ever. That can be said for every TES game except for Skyrim. There is better looking games than Skyrim even on the consoles, but Skyrim is beautiful enough.
Morrowind had lots of customability. Less than Daggerfall but more than Oblivion and Skyrim. At it's time, "coming of the boat" had a magical feel to it. Senda Neya just seemed magical coming into it for the first time. I always have a soft spot for that place for some reason.
You can sleep in any house. If the person who died in that house for what ever reason, you basically owned that house. Not so in Oblivon. I believe the same for Skyrim as well. Morrowind seem so huge for it's time. While Oblivon had a bigger land mass, Oblivion "felt" smaller. Skyrim captures the "feel of scale" of Morrowind.
For alot of bad that Morrowind has, there is alot of AWSOMENESS that Morrowind has that wasn't brought into Oblivion. That is why alot of people love Morrowind and prefer it to over Oblivion and Skyrim because it still lacks the options that Morrowind had.