By alchemy animation like in Oblivion, I mean like an animation where it looks like the NPC is mixing potions or something...
Pretty much all (with a few exceptions) of the Normal biped animations in Morrowind are horrible, but the thing is animation replacers aren't the goal of this mod, but I do believe that there's a new animation thread still around somewhere.
Especially when your character has gotten fast, the animations become even worse. Beast race animations are the most noticeable (at least for me, I am a cat person so I never played human races or argonians for that matter) - whoever made the vanilla animations probably rushed it or something.
Aside from animations for slaves outdoors and indoors, special animations for people who sell things perhaps, mining animations. Maybe some training animations where you can see a trainer train someone in doing something during certain time of the day... (this would require an animation for the trainee and the trainer scripted) - for example the trainer is looking and criticizing the trainee who is trying to brew something...