Yes, the sawed-off really does have more accuracy and range than the assault shotgun in the vanilla game by design. Good thing too, otherwise it'd be outclassed by the other shotgun in absolutely every way.
Hey there, it's me Markie, the developer of Magicka Recalculated (a Morrowind mod) here again. Technically, you're only partially (emphasis on partially) correct here, for example,
sawed-off does not have more range than the assault shotgun, they both share the same accurate range of 1200 UUs (75 feet) and max range of 2400 UUs (150 feet).
As for accuracy, there are a few possible influences on the situation:
1.
They intended the sawed-off to be low skill, that's why the base accuracy is higher so that it takes less skill to reach a usable accuracy. However they might have overlooked the nature of the skill bonus, causing the sawed off to scale off-puttingly at high skill. Do note that the assault gun was also intended to be low skill, yet it starts at a pretty terrible accuracy (worse than sawed off by 5%).
2.
There might have been a mistake. There are clues pointing at the possibility that there was originally only ONE shotgun. When they decided to have two, they copied the same shotgun text twice (and maybe code too??), which led to a variety of questionable entries, like assault shotgun having a "slow" rate of fire, while sawed off has "medium", yet assault shotgun is described as "like sawed off but faster". I can imagine that this eventually caused somebody to make a mistake in setting the values for the two shotguns, swapping their accuracy. Note that the MP ranges for sawed off are
indeed shorter than for assault, yet the MP recoil for sawed off is
lower than assault for unknown reasons.
Regardless of the evidence presented above, it's for sure that they intended the shotguns to at least work like shotguns. There's a minimum spread value for shotguns that only works in multiplayer, this enforces a minimum amount of spread in order to (quoting the programmer's comment) "
keeps shots from all going in same place (ruining shotgun effect)". This minimum value equates to 87.5% accuracy, whereas the assault shotgun can get at most 85%, while the sawed off can get up to 95%.
I don't know what happened for sure, but I don't think that anyone should ever take what they perceive on the surface, no matter how right or wrong it is, as absolute truth to base their logic on, then try to pass it back off as what objectively happened and was intended. The fact remains that there is a way to balance the two shotguns without breaking their "simulative nature", however whether you're clever enough or not to know how is another story.