Well, I decided to take a risk on the recommendations here, and went out and bought it.
I don't hate it. They didn't fix everything that bugged me about morrowind, but they fixed enough to make it palatable.
The way stat gains are determined at level up is still stupid. It makes your minor skills far more important to your stat growth then major ones, and I can't help but feel that it's ass backwards. Especially combined with the monsters-level-up-too mechanic, which means the quantity of levels you get isn't nearly as important as the quality of levels.
That said, it's fun. Combat is certainly much more vibrant then morrowind. Non-important characters still don't have a real dialogue interface, but at least you're not regualarly confronted by a list of every single topic in the universe when talking to a beggar who'll know nothing about anything. Important characters do have real dialogue, which is nice.