People don't complain about levelled enemies in Morrowind because of a few reasons.
1. It doesn't affect NPCs or uniquely placed enemies in any way
2. Increasing in level simply increases the variety of enemies which will spawn, as opposed to Oblivion where you're always stuck with a set of about 3-4.
As an example, take any Daedric ruin in the game. Daedric Ruins almost always have high level NPCs who will be dangerous to a character that has been playing for a few hours, let alone one who just stepped off the boat at Seyda Neen. However, that person who just stepped off the boat will only encounter Scamps as part of the generic Daedra list, as well as a chance for a Flame Atronach, Clannfear and Dremora if the in_dae_atronach, in_dae_clanfear and in_dae_dremora levelled enemies have been placed down, since all of these can spawn at Level 1. As stated, this Level 1 character will still have a problem with hand-placed enemies such as NPCs as well as some hand-placed creatures. Ibar-Dad is a great example of this, where apart from the Level 15 and 17 Sorcerers occupying the cave, there will always be a Daedroth guarding a key, two Dremora Lords guarding the vault door and a Golden Saint inside said vault, guarding a Daedric Battle-Axe, Shield, Staff, Helm and Eleidon's Ward.
Here's some MS Paint to explain the situation:
In red are all of the enemies that will spawn in a Daedric ruin at Level 1. The green box goes up to 11, and the blue box goes up to 16. You'll notice that the blue box is actually surrounding every enemy, though. Low level enemies are not wiped from the levelled lists as the player progress, unlike Oblivion. You can still find Scamps at Level 20 and I'm pretty sure you have just as high a chance of a Scamp spawning as you do a Golden Saint. This is unlike Oblivion, where a Level 16 character would only pull from the 12-16 group of enemies and Scamps, Flame Atronachs etc. would disappear from the world. It's also worth noting that, contrary to statements in this thread, Mudcrabs and Daedra are not related when it comes to levelled lists. Mudcrabs only spawn using the ex_shore lists, which are comprised purely of Mudcrabs, Cliff Racers and Netch. There's also an ex_shore lists which is
just mudcrabs. Any instances of Daedra and Mudcrabs spawning near one another is a case of a Daedric ruin near a coastline, or levelled enemies located near a coastline in Molag Amur or the Grazelands.
This is exactly what daggerfall does. The monsters that spawn depend on your level.
They do, but a Level 1 character can still encounter a Vampire Ancient or a Lich in the correct dungeon, and can always technically receive a quest to go kill one, which obviously will make it spawn. Again, the difference between the rest of the series and Oblivion is that in Oblivion, no challenge can possibly exist at level 1 with a few notable exceptions (Umbra, Uderfrykte Matron) since it's impossible for anything too scary to spawn. Daggerfall still spawns scary things. Morrowind doesn't spawn scary things, but has plenty hand-placed in the world.
