Having played morrowind for 100s of hours (and not quite beating it yet.. dagoth ur remains still) here are things that could push this new game to a higher level-
Having a town and it's characters shut down at night and having npcs call for help if they see you in their house at night. Also, instead of that crime being reported thing, make a guard see the incident or make the npc run to a guard before it can be reported.
No cliff racers (yes, i know there is a mod for this)
Dynamic shadows
Can't wait for this game. Looking forward to seeing new pics...