Like I said, Witcher was good, but I'm not really in to 3rd person games. The only other 3rd person games I've played were Star Wars: Knights of the Old Republic 1 &2, Jedi Outcast and Mass Effect 1 & 2. I supposed I prefer sci-fi to fantasy.
Morrowind is a lot different from Oblivion. Oblivion is more hack and slash than Morrowind was so it's a bit of a faster paced game. Morrowind kinda draws you into the it's world with all the lore in the game and it's environment. It's a slower paced game especially in the beginning since you need to devote time to improve your skill enough so that you have a fighting chance to survive. Overall, Morrowind was a lot more immersive than Oblivion.
There are always mods you can install to improve the graphics in Morrowind. There was something called the "Morrowind 2011 Graphical Project" that combined a lot of user created mods. However, it was taken offline since a lot of modders complained that they did not give permission for their mods to be used in a compilation.
http://www.gamesradar.com/pc/elder-scrolls-morrowind/news/morrowind-2011-graphical-project-is-attacked-slain-and-looted-by-modding-community/a-2011010784839437023/g-20060330151844646032
However, you can go to Planet Elderscrolls to download Morrowind and Oblivion mods.
http://planetelderscrolls.gamespy.com/View.php?view=Mods.List