Nothing has ever lived up to it's hype. Therefore avoid the hype.
I guess it depends on the person.
All of these lived up to the hype for me (the list of games that didn't disappoint me is almost every one I look forward to):
The Legend of Zelda: Link's Awakening
Chrono Trigger
Chrono Cross
Final Fantasy VI, VII, IX, X
Mass Effect (which I first started playing a couple weeks ago, it's better than I expected as far as my tastes go)
Super Smash Bros. Melee
Super Smash Bros. Brawl
Super Mario Galaxy
Super Mario Galaxy 2
Banjo-Tooie
Donkey Kong Country Returns
Xenogears (technically this wasn't hyped but it exceeded my expectations)
Ratchet and Clank: A Crack in Time
Metroid Prime
Those are off the top of my head games that I got all hyped for that either didn't disappoint me or exceeded my expectations.
I think easily the game that ever disappointed me most was Spore, which by extension is why I'm worried about the quote that most quests will be generated by Radiant Story. Radiant Story
heavily reminds me of Spore's system for quests in its final stage. I really hope they pull it off well. I was worried about it when it was first announced, stopped worrying when I heard they are being careful about making sure it's fun, and then got worried anew when I heard the majority of the game's quests will be randomly generated.
As to the people preferring Morrowind if they played both, I think it would be interesting to see how it would look based on which game people played first. I played Morrowind second and though I did not finish it it did not pull me in like Oblivion did. I love both games but I'm just not "getting" why half the topics are "this should be like Morrowind and that should be like Morrowind." You can't judge what most fans want by an Internet message board either. Those of us that actually use these boards are a tiny minority of the series' actual fans. If these boards accurately reflected the fanbase Bethesda would be in trouble (due to not enough sales).