The worst thing in Morr's dialog system was that the conversations were *DEAD*, therefore the NPCs were also DEAD - just some pretty-faced dummies with hypertext documents attached to them.
Tell me please the difference between any MOrrowind's NPC and a sign-post. There is no.
This led to the castration of the gameworld, stripping it of what is most important - the LIVELINESS and IMMERSION.
Voice-overs don't give immersion, they just contribute to it, but what is most important is the quality and abundance of dialogs. Torment and Fallout were not fully-voiced, but they had so many LIVE, INTERESTING conversations. And it was the cornerstone of their success as RPGs. (who gives a fuck about their combat system or RT/TBness?)
That's why Morrowind is not an RPG. It's just a hack'n'slash with some minor elements of RPG.
That's why it's so important now for Bethesda to rework the conversation system really thouroughly.
If they fail again, then.... well, then they are completely incapable of making RPGs.
What they must do is a tree-based system, like in so many other RPG.
Due to the nature of the game, KOTOR's model would do just fine.
Just as long as there are actual conversations, because i haven't seen any conversations in Morr.
For those, who don't know what human interaction sounds like, here's an example:
NPC: Hello, traveller. Where are you going?
1. Nowhere in particular, just roaming about.
2. To the village over there.
3. None of your fucking business, berk.
4. (silence)
5. Sorry, I'm in a hurry.
You couldn't have such simple, yet live conversation in Morrowind.
What do you think needs to be changed with guilds?
Guilds were shit. They had no value, they were just checks in uber-character's list of uber-deeds. They were all as one, and character could have become a leader in almost all guilds at the same time. It's just moronic. And he had almost nothing to do for that: just some dull quests, the same pattern in every fucking guild. And that's it: once you've become a guild-master you have NOTHING else to do in *your* guild. I repeat, *YOUR* guiild. Can you imagine a guildmaster who DOESN'T attend to guild's business once he's been entitled? Idiocy.
BG2, Gothic - they all had MUCH better guild systems.
So, again, Morrowind is not a RPG, it's just a
MUNCHKINARIUM!