Indeed as Zed said, Morrowind dialogue is far from the fake caricature that some prejudiced players tend to draw. But not only there are tens of npcs with a level of detail in their dialogues similar to Divayth Fyr, but several hundreds of npcs with unique answers even if less numerous than in the most developed ones.
There are more npcs with unique dialogue in MW than in Gothic 1+2+3 combined.
And on the other hand, all npcs in Morrowind with guards exception are unique, in the sense that even the hundreds of npcs without unique dialogue are all handcrafted so their presence in the world is handplaced, they have level, skills, attributes, class, health/magic and fatigue level, inventory, and personalized looks, with most, several hundreds, having also faction and rank, a selection of spells, scripts with diverse functions, world possesions or mentions in other npcs dialogue, in books or notes. 3.000 true unique npcs counting expansions. More than 2600 in the base game. This is more than any other single player game ever. So the "90% of npcs are copy-pasted" is even more false and absurd.
How it is one of the most offensively ugly 3D RPGs ever made. Many people will laugh, but when you happen to be running from one place to the other all the time, you kind of expect the graphics to make it worthwile, because that's all you are seeing while pressing forward.
"Ugly" is something very subjective, but if you talking about "graphics" only (3d models, textures, shaders, lights other visual effects, water, etc), Morrowind is the most graphically advanced 3d rpg until some years after its release date. Far more advanced than 3d rpgs from 1999-2005, 3 years before and after its release. Obviously, I'm not even pretending to compare with later games, what would be ridiculous and at level of 15 years old teenagers complaining about how ugly are old games... But as beauty is not only a matter of graphical advance, we must think about concept design, its implementation and world design and then Morrowind is far superior to near every modern game and most old ones. Art design in Morrowind is superb.
It is very easy to break the game and thus rendering "progression" pointless very early into the game, meaning you lose any reason to explore the island since there is nothing of value for you to find. You find potions left and right, but I can't say finding a cave full of loot was more interesting than finding a single potion in Gothic.
"Very early" only applies to horrid "mmorpgs-ratkids" gameplay style in which you must do every quest in every faction with the same character and only because Morrowind has more content than most games, +4 times more playable content than New Vegas, +10 times more than Gothic, etc. Playing normally, in a pure first or second gameplay, you need tens of hours (30-60 hours) to become a walking god, so the same amount of time to finish most games. Even abusing of some exploits, minmaxing a bit in character creation or trying to maximize bonuses in level ups, if you don't abuse of metagaming or previous knowledge in a tenth play, this remain true.
How despite some iconic sounds, the sound design is pretty bad.
What is false, specially comparing with games in the same date but even comparing with some recent games. For example sounds underwater: Morrowind has different sounds for weapons or magic subaquatic use and you can even hear the raining and thunders with a different sound underwater, what isn't implemented at all in many modern games. Or talking about these storms they sound very well for the date, as many other athmospheric effects.