Morrowind is redeemable by mods, but I wouldn't say it's been redeemed just yet. Still, mods will provide you with an eternity of enjoyment; though there will always be things you'll wish to implement. I got into Morrowind because it reminded me of Ultima Underworld minus the dialogue choices... I would never play it without mods though (never have actually).
The LGNPC (google LGNPC to find their site) series is a must-have. It gives many NPCs much more dialogue/quests, and multiply that by 10 if you play as House Redoran.
Assassins Armory adds many more weapons (all balanced), making the game more interesting.
Havish is an excellent mod that adds many more quests.
Weather Effects is good, makes it so that the player experiences different stat effects during different weather.
The Distant Land mod is amazing. It makes the entire world show at once (a la Oblivion) rather than eternal fog. You can also download a mod that brings the eternal fog back when the weather calls for it.
The Temperature mod gives each region it's own temperatures and weather effects.
Booty Island is another good quest mod.
Juniper Twin Lamps is another, adds a faction for people who wish to free slaves.
Vivec Expansion, makes Vivec how it should have appeared (with all sorts of new shops, huts, poor people under the cantons, etc. Adds many quests too).
Windows Glow - at night!
Annastia - a great mod that adds many non-linear quests.
Forests of Vvardenfell - also great.
Traveling Merchants - cool stuff.
Tejon's Gold Weight - forces you to watch your inventory.
Morrowind Enhanced (with Combat Enhanced and Blocking Enhanced) is a must-have for me. Oblivion's melee combat was its only redeeming factor, but Combat & Blocking Enhanced for Morrowind is far better.
Living Cities of Vvardenfell - doors lock at night, NPCs leave their shops and go home, to the bar, etc.
The Creatures mod (look up PirateLord), adds many new creatures that fit into lore.
Necessities of Morrowind - you must eat and drink, and sleep, to survive.
Morrowind Comes Alive - Adds many more NPCs to the game, friendly and hostile, some will join you, etc.
Snakes on a Plane of Oblivion is a good quest-mod, though I wish the author would update it.
Galsiah's Leveling mod is a must-have mod unless you use Blocking Enhanced (unfortunately they conflict, and blocking comes up in game-play more frequently than levelling, so I choose the former). However if you want to slow levelling to a more realistic level, you could always use Hardcore Levels, by yours truly.
There are also countless book mods which add new books, a very strong point of Morrowind IMO.
It really isn't difficult to avoid conflicts. All of the above work fine together. You can also check out these lists:
http://www.mwmythicmods.com/
If you have multiple mods that add NPCs/Creatures/Items to levelled lists, you need to merge levelled lists. Download TESTool and the Resequencer, can be daunting to the noob but still very easy to use. Ask if you need help.
Every mod on my modlist is good too, and none of them conflict.
GameFile0=Morrowind.esm
GameFile1=Tribunal.esm
GameFile2=Bloodmoon Landscape Overhaul 1.0.esm
GameFile3=Bloodmoon.esm
GameFile4=Beauty_Pack.esm
GameFile5=Assassins Armory.esm
GameFile6=Book Rotate.esm
GameFile7=Texture Fix - Bloodmoon 1.1.esm
GameFile8=Texture Fix 1.7.esm
GameFile9=Havish.esm
GameFile10=MCA.esm
GameFile11=ACE_Books.esp
GameFile12=Lgnpc_SN.esp
GameFile13=master_index.esp
GameFile14=VOORHEES_AldIndoril2.esp
GameFile15=Weather Effects.esp
GameFile16=lgnpc_MaarGan.esp
GameFile17=lgnpc_GnaarMok.esp
GameFile18=Emmas_woodelf_faces_1_0.esp
GameFile19=lgnpc_Ald'ruhn.esp
GameFile20=lgnpc_khuul.esp
GameFile21=lgnpc_AldVelothi.esp
GameFile22=lgnpc_HlaOad.esp
GameFile23=LGNPC_Tel Mora_v1.02.esp
GameFile24=LGNPC - Foreign Quarter v0.5.esp
GameFile25=LGNPC - Pelagiad.esp
GameFile26=Westly's Imperial Male Headpack.esp
GameFile27=Westly's Dark Elf Male Headpack.esp
GameFile28=Distand Land Interior Fix.esp
GameFile29=Clean The Mortal Life of Vivec.esp
GameFile30=Distant Land Weather Fix.esp
GameFile31=LGNPC_Indarys_Manor_v1_3.esp
GameFile32=LGNPC_PAX_Redoran.esp
GameFile33=Chargen At night.esp
GameFile34=Immunity to Normal Weaponry.esp
GameFile35=AscadianPalms1.1.esp
GameFile36=LGNPC_Secret_Masters.esp
GameFile37=LGNPC_Vivec_Redoran_v1_2.esp
GameFile38=LGNPC_SM_MCA5.esp
GameFile39=Enhanced_Stealth.esp
GameFile40=The Shrine of Mephala by Westly.esp
GameFile41=TC_SadrithMoraClosed.esp
GameFile42=Blasphemous Revenants.esp
GameFile43=Nirnroot.esp
GameFile44=SOL_Maurrie's_True_Love.esp
GameFile45=Mining Mod V2.0 [TRIB].esp
GameFile46=Temperature 1.13.esp
GameFile47=Daedra Summoning Enhanced V. 1.1.esp
GameFile48=SOLcodebook.esp
GameFile49=New Books-1174420688-TESSource.esp
GameFile50=Booty.esp
GameFile51=Book Rotate - Tribunal v5.3.esp
GameFile52=Book Rotate - Bloodmoon v5.3.esp
GameFile53=Book Jackets - Morrowind - BookRotate.esp
GameFile54=Book Jackets - Tribunal - BookRotate.esp
GameFile55=Book Jackets - Bloodmoon - BookRotate.esp
GameFile56=AreaEffectArrows.esp
GameFile57=MW_CultOfTheClouds_v10.esp
GameFile58=dxm_metallic_signs.esp
GameFile59=DagonFel_Well.esp
GameFile60=Healers.esp
GameFile61=pfweapons.esp
GameFile62=EBJ_spell_organizer.esp
GameFile63=Juniper's Twin Lamps (1.1 Tribunal).esp
GameFile64=Creature Pack 1.1.esp
GameFile65=Illuminated Order v1.0.esp
GameFile66=Illuminated Order v1.0 - Bloodmoon Compatibility Extras.esp
GameFile67=Ashlander Traders.esp
GameFile68=Vivec Expansion 2.0.esp
GameFile69=t_lostheir.esp
GameFile70=goth_clothez.esp
GameFile71=Better Bodies.esp
GameFile72=farrp_WeaponCompilationMod_V2.esp
GameFile73=Byb_Traders 300.esp
GameFile74=Windows Glow.esp
GameFile75=Blight Bounties.esp
GameFile76=Haunted Tombs v1.05a.esp
GameFile77=hauntedbridgefixed.esp
GameFile78=A Call to Issilar.esp
GameFile79=Forests of Vvardenfell.esp
GameFile80=Annastia V3.3.esp
GameFile81=Assassins Armory - Bolt Rifles.esp
GameFile82=PW_Cait_Moose.esp
GameFile83=height rebalancing.esp
GameFile84=Tejón's Gold Weight.esp
GameFile85=TravelingMerchants_v2.2.esp
GameFile86=MWE_Base.esp
GameFile87=Cait's Squirrels.esp
GameFile88=Birdies by Cait and Leeloo.esp
GameFile89=SG-toughersixth.esp
GameFile90=Better Clothes Beta_1.4.esp
GameFile91=Illegal Dwemer Trading MW-TR.esp
GameFile92=pcc_lob_shephli_66.esp
GameFile93=Map - Deluxe.esp
GameFile94=TargetSpellSpeedMod.esp
GameFile95=HardcoreMercantile.esp
GameFile96=NPC LCV Schedules 03.esp
GameFile97=NPC LCV Locks.esp
GameFile98=CM_Assassin_5.esp
GameFile99=TLM - Light Sources (Natural Water).esp
GameFile100=TLM - Ambient Light + Fog Update.esp
GameFile101=TLM - NPC Light Sources.esp
GameFile102=TLM - External Lights Ownership.esp
GameFile103=BM-Fixes.esp
GameFile104=TLM - Light Sources (Lanterns).esp
GameFile105=TLM - Light Sources (Clearer Lighting).esp
GameFile106=CastReduce-v30.esp
GameFile107=Nymeria's Monthly Respawn.esp
GameFile108=Nymeria's magicka potions adder.esp
GameFile109=MWE_Blocking.esp
GameFile110=MWE_Combat.esp
GameFile111=Nymeria's Faster Walk.esp
GameFile112=Assassins Armory - No Scripts.esp
GameFile113=HardcoreLevels.esp
GameFile114=Service_Requirements_V1.4.1&WGI.esp
GameFile115=Balance - NPC Spellcasting.esp
GameFile116=Gameplay - Faction.esp
GameFile117=Gameplay - Dialogue.esp
GameFile118=Balance - Magic Effects.esp
GameFile119=Balance - spells.esp
GameFile120=Balance - Character.esp
GameFile121=Balance - items.esp
GameFile122=Sris_Alchemy_BM.esp
GameFile123=EcoAdjMisc.esp
GameFile124=EcoAdj(Sri+Ingredients).esp
GameFile125=EcoAdjDaedricDrops.esp
GameFile126=BrittlewindFixed.esp
GameFile127=Complete Trade Fix.esp
GameFile128=Creatures.esp
GameFile129=Necessities of Morrowind 2.1.esp
GameFile130=MCA - NOM Patch.esp
GameFile131=Merged_Leveled_Lists.esp
GameFile132=horationpcenhanced11-bm.esp
GameFile133=MCA - Guards Patch.esp