The graphics are tolerable by modern standards. OpenMW is a little difficult to get up to great visuals (requires a little tweaking), though I believe it now has all the features of the original game plus some fancy innate upgrades to things like shaders. There are model and texture replacements that can make things look tremendous (both for the vanilla engine and OpenMW).

It is quite a lot of text and reading, but one of the things that's really cool about Morrowind is that it has the unbridled spell and enchantment creation from earlier Elder Scrolls with an expanded spell list and all sorts of fun, sometimes unintentional. For instance, there's no fast travel barring finding people who have boats or similar ways to cart you around, but you can get insanely strong Jump spells/enchantments and just fling yourself great distances.

The big problem nowadays is not that we can't do what Morrowind did, but that people have grown accustomed to details in different areas and not to worlds that feel living. It definitely feels like it's aged compared to modern games (heck, I think Daggerfall gave more tools to the player in some ways), but part of the joy of it is that its world is large enough to get lost in but not so large that you can't navigate it.