The thing about Morrowind is that the gameplay is woefully outdated. Everything else is absolutely amazing. The game is unquestionably worth it, it's just harder to play now that most of its gameplay elements have been highly refined. Your quest list is cumbersome, there's no indication of anything on the map, the hit system is frustrating... it's all pretty good, but really old. But the story, atmosphere, and world are fantastic. I say go for it, and just push through the first bit of gameplay until fighting is actually possible, then it gets a lot better.
EDIT: Also, I've heard there are mods that make the battle system better and the graphics more highly-detailed. I played it on the Xbox, so I don't know, but you may want to check them out.