(anyway, even in Morrowind attributes were just a function of skills).
Sorry, but no, you're being retarded here.
Yes, attributes in Oblivion were already spurious (because agility was marksman 2 and so on), but in Morrowind they served an important function.
First, attributes in general are broader than skills, for example agility affects all tasks requiring physical nimbleness, not just, for example, hitting with long blades.
Meanwhile perks are narrower than skills. Attributes are what forms rough outline of your character and what makes your character predisposed for particular collections of skills.
Without attributes character behaviour is hard to make consistent, for example without intelligence you can't tell the character that he needs to be smart to effectively learn and use particular skills.
Second, attributes served purposes separate from those of skills - for example agility governed how well you kept your balance and thus how hard you were to knock to the ground (enchant a warhammer with drain agility in MW and have fun), willpower governed your resistance to certain spells and so on.
Skyrim just cut out useless/superfluous shit
Go smoke a dick.
Athletics: Movement speed shouldn't be a skill/trait in a first person based RPG. Only led to more tedious travel.
Again, wrong. Sustainable movement speed should be independent of build, but sprinting/running depending on build are good as they allow builds emphasizing mobility in combat. And mobility is one of the few sensible reasons for not encasing yourself in a daedric tincan - other than that light armours are larpfaggotry.
Blunt/Blade: Weapon distinctions made more sense with Morrowind's combat but not so much with Oblivion/Skyrim.
Actually, Skyrim's system is orthogonal to Morrowind's. Morrowind emphasized weapon type. Skyrim emphasized weapon grip. It would be best to have both, but other than that Morrowind's system is better because it plays nicer with other skills - for example in Skyrim specializing in 2h makes specialization in shields questionable at best - just add some 1h spears and light 1h crossbows and we're set.
Hand-to-Hand: Pointless unless you want to E-LARP a monk.
And that's different from E-LARPING a knight, a wizard or a motherfucking Garret how?
Acrobatics: Same reason as Athletics. Jump height is almost entirely irrelevant in these type of games.
And just as wrong as the reason stated for athletics. Jumping is great in games that have a lot of diverse terrain and z-axis you can exploit in combat or when getting into position. It shouldn't be a skill (because of bunnyhopping to level up), but it should depend on an attribute and encumbrance.
Mercantile: They got rid of speech checks and made nearly all of the Speech tree the new Mercantile. And while they essentially abandoned speech checks in Skyrim the wheel in Oblivion was horrible.
There are speech checks in Skyrim and arbitrary skill checks can be implemented in dialogue as well. Actually I don't care that much about this merger.
Mysticism: Semantics. They just moved the spells into other schools of magic.
Except many of the changes don't make sense. Hell, some new spells don't make sense without mysticism - see clairvoyance.
With the same pickaxes they used to make holes into it and build cells inside. Just keep whacking it until it turns into a floating pile of dust.
Actually, structural integrity makes little difference if something hits you at such velocity. It doesn't matter if it's solid rock or a pile of fine dust, it still packs megatons of blam.
Actually breaking it up might be viable tactics, but you'd have to be very careful disposing of the material, as regardless where you'd put it it would be doomed to kablam by impacting its resting place. I don't think Dunmer would have the means to move all the mass of the entire Lie Rock somewhere where it would do no harm (and no, the sea doesn't count, neither does Red Mountain), unless they tricked Mehrunes Dagon that he could build sand castles out of it in Oblivion (he might actually be delighted by the surprise, because MD loves shit blowing up).
Like with waterwalking and levitation, it helps you get to safer areas and evade enemies. The real problem is that you're the only person in the world capable of that.
Actually, I had Itermerel levitate on me in Morrowind, and that Ahemmusa wise woman can waterwalk.
Plus, it's not really up to devs to devise all possible uses of stuff the implement, for example in Morrowind, if you had waterbreathing you could cast waterwalk on enemy, hide in the water and spear him through the nuts from below.
It's been said repeatedly it's because Bethesda wanted more detailed/larger cities and the engine couldn't handle them (or maybe more specifically, that many NPCs with full AI) in the regular outdoor areas on the Xbox. Instead they had to cut them up into smaller interior levels, which meant levitation had to go, otherwise it'd reveal that the cities on the overworld are all empty and full of low-poly props.
And still it seems the cities are even smaler than oblivion ones, solitude was literaly a capital joke
I think that in an already scaled down world scale matters less than the impression of scale and Skyrim's cities definitely feel bigger.
It's mostly just a cheap parlor trick - Skyrim 'big' cities like Solitude or Whiterun are pretty elongated, with palace on the opposite end than entrance.
Our minds are generally accustomed to thinking of cities in terms of roundish blobs with most important places in the centre so the entire length of a thin, long city feels like a radius of much bigger blob city.
Oblivion's cities were already blobs, with similar area, so they felt much much smaller.
Then again, Morrowind's distances relied on similar trick when game forced you to zigzag and walk in circles around impassable landscape to weave the illusion of scale.