Loved Morrowind, spent a ridiculous amount of time in that game, the interface and crap animations were acceptable back then though. They really haven't improved it since.
If they properly revamped the engine it would be fantastic, but they don't seem to rate it a priority.
Yes, CD Project Red need to loan the use of their engine to Bethesda

And the ****e combat. Why does nobody else have an issue with this?!! I'm starting to think I may be a grumpy old ****!
Combat was pretty poor yeah, if was acceptable in Oblivion, but on next gen it needs loads of work, which is why i hated FO4 as well.