I'm still sitting very far to the cautious side of "Cautiously Optimistic".
One thing that worries me in particular is the voice acting, I'm simply having a very hard time believing that that will turn out as anything as a disaster, neither Oblivion or Skyrim has voice acting that could be classified as great, or even good, but at least it was still done by professionals. With in insane amounts of dialogue to be found in Morrowind and all of it being done by amateurs, it just seems like a massive immersion breaking catastrophe waiting to happen.
If I were them I would really, REALLY just have stuck with text for the dialogue, that way they could also implement things like the work of the Less Generic NPC Project into the mod, to make the NPCs of Morrowind seem a little more like actual people.