Haven't modded it so far, but I seem to have gained some control over the interface. It's still the shittiest thing ever (no joke - someone should be drawn, quartered and hanged here), but at least I have learned to make it do my bidding.
I have also learned to look at my character properly - TPP view seems to be severely restricted if you have weapon(s) drawn.
Updated impressions follow:
The game looks like heavily modded oblivious, minus the excessive derp. I don't think it qualifies as RPG anymore with all the simplification and derp regen (then again, if someone considers LoL1 an RPG, then Skyrim is still pretty deep in hardcore RPG territory), but I'll play and hope it turns out to be a decent fantasy FPS.
All skills start at level 15 plus racials, which I'd deem marginally useful in Morrowind, so it isn't as outrageous as I thought it would be, but the other half of my suspicion is confirmed - you do start as Jack of All trades. Like I said - it's not really an RPG any more.
Character models, curiously enough are of much worse quality (in terms of polycount) than in oblivious, but overall everything looks better.
I see what they did there, BTW - instead of bothering to make individualized models for each race, the lazy bums decided to make a single rough one for each sex and add details that may differ as texture. Lazy as fuck and 1999 has already called wanting its models back (seriously, the look more or less as detailed as in Morrowind minus the Pinnochio syndrome and the fact that you just have single model rather than 10, but still better than fucking oblivion so I won't bitch.
Also, the game seems to attempt some meaningful environmental interaction (we'll see if it actually does or merely seems to) and there are hints of someone actually thinking when designing various things (other than fucking interface).
Mouse input is laggy, though the turning speed is adequate if you push the slider to the max. Horizontal, I mean. What the fuck were they thinking when making vertical sensivity lower? Especially in game where you're supposed to spend time fighting against aerial attackers?
Stat menu is VERY impractical, but easy to navigate compared to item and magic ones.