Oblivion is the game that got me interested in the series, and I considered it my favorite game ever. I tried Morrowind when it came out, but it didn't interest me. I didn't understand it. I started playing Morrowind again a few weeks ago and I'm glad I did. This game is amazing in every way. Better and more quests, more interesting environment, more artifacts, no level scaling, and generally more of everything. The graphics issues are negligible; I even think they're quite good. The environments are very detailed and the only complaint I have are the low resolution textures on the people and armor.
TL;DR: Try this game. Take the time to understand how it works.
And just because something is different than Oblivion, it doesn't make it bad.
If you think the combat is stupid because you never hit anything, just know that it won't always be that way.
A few levels in and you will almost always hit.
Magicka doesn't restore overtime, but that's not really a problem. You can fill it back up by resting anywhere in the wild or sleeping in a bed.
If you have alchemy as a major, the most basic Restore Magicka potion will be more than enough. You will have to cast some spells not to waste it.
There are solutions if you think it takes too long to walk everywhere:
Silt Striders: will take you between cities for a small fee. You can't get to every city from one, so you may have to go to one city, and from there another.
Boats: same as above, but for coastal cities and settlements.
Mages Guild Guides: pay gold to travel between Mages guild halls instantly. Extremely useful.
Mark and Recall (spells, scrolls, potions): allow you to mark your position on the map and instantly teleport there from anywhere else in the game.
Divine Intervention (spells, scrolls): teleports you to the nearest Imperial fort. They are usually right next to major cities.
Almsivi Intervention (spells, scrolls): teleports you to the nearest Dunmer temple. They are almost always found in the cities.
Levitation (spells, scrolls, potions): allow you to walk in the air. Useful for getting over mountains and rivers. This can significantly cut travel time.
So yeah, as someone who was obesessed with Oblivion, I recommend Morrowind to others.
