"Morrowind"... becomes less 'character' driven and more 'loot' driven the more you realise what cool loot is available in the game.
If you're referring to Morrowind's hand-placed loot, I could not disagree more. The more static world - and especially hand-placed loot - is the single thing I most miss in Oblivion and Skyrim. Oblivion's rigid, crude, ham-fisted item leveling (where virtually every single piece of loot in the game is inexorably tied to our character's level) virtually ruined the fun of exploration for me. One of the joys of exploring Vvardenfell for me was knowing there was cool loot to be found. Knowing in Oblivion that I was never, ever, ever, going to find anything that was not appropriate for my level was the worst design decision Bethesda made in Oblivion. It led to the "bandits in Daedric armor" phenomenon. It was awful. It stank, pure and simple.
And I simply do not know what you're talking about when you say Morrowind becomes "less character driven." I have never experienced that. In my opinion, Morrowind is resolutely the most character-driven of the last three games in every way I can think of.
"Skyrim" is amazing but many of the primary stories are 'overtold' to the point that it's stifling for the background and motivations for your character.
What does "overtold" mean? I Googled "overtold" and came up with nothing. What does "stifling for the background and motivations for your character" mean and how does it relate to "overtold?" Could you rephrase this in English?
In "Oblivion", depending on your character's motivations and aspirations you could end up having significantly different game experiences through multiple playthroughs.
This is true of each of the last three games. Personally, I'm having more "significantly different game experiences" in Skyrim than I ever had in Oblivion. I haven't had this amount of "significantly different game experiences" since I last played Morrowind.
It doesn't have crutches like 'The Creeper', 'The Grand Soul Gem' available from the Enchantress in the Mage's Guild, 'The Lord's Mail', 'The Temple Treasury at Ghostgate' and dozens of other "Must Loot" spots that get in the way of roleplaying in "Morrowind"
There were no "must loot" spots that got in the way of
my roleplaying. If you were unable to restrain yourself I feel bad for you. Roleplaying is all about self-imposed limits. A roleplayer takes only those actions that our characters might plausibly take. This principle has always precluded me from exploiting what you call "crutches" and "must loot spots."
you feel out of place if you do not want to see yourself as the "True Dragonborn Saviour of the Realm" like in "Skyrim"
Not me. I am on my fourth character and only one has done the main quest. I may never do it again (I've only done the main quests of all the games once). I do not feel "out of place" at all when I play characters who do not see themselves as the "True Dragonborn Saviour of the Realm."
In fact, if I were asked to name one Elder Scrolls game that obnoxiously shoved its main quest down my throat it would be Oblivion. From witnessing the Emperor's murder to being told by one NPC after another what a crisis Cyrodiil is in to having NPCs run screaming down the road from the refugee camp to having 50 Oblivion Gates constantly popping up and despoiling the landscape wherever I go, Oblivion grabs you by the throat and strangles you with its main quest. If you ask me, Oblivion's main quest is the most intrusive, obnoxious main quest in the entire Elder Scrolls series. Personally, I felt out of place when I didn't see my characters as the "Champion of Cyrodiil."
others wished the game would have held their hand a little more when it came to story
Wow, I'm really stumped with this one. I don't recall anybody ever wishing that Oblivion would have held their hand more. That's a new one on me. My recollection of reading posts on this forum and elsewhere is just the opposite. Since 2006 I have been reading about how players hate and despise hand-holding in Oblivion. You'll have to link me to a thread or post where somebody said this because I do not recall reading such a statement.