Reading all those complaints about a "compressed world" I feel compelled to say that Piranha Bytes did a great job with that in Gothic and Gothic II.
When I played Gothic for the first time, I remember seeing a ruin on a mountain from the "starting area" and it took me many hours to actually go there. The game felt really big initially, until I realized that after wandering into the wilderness for hours I was actually just a few steps away from the Old Camp.
To me, the world map always looked like a larger map folded to take up less space. Many areas are very close together but seperated by natural obstacles so you can't tell how close together everything is when you play it for the first time.
I always felt that was a great strength: You can go exploring for hours - encountering something of more or less interest every few steps - and once you have explored the area you can go back to to your starting point in five minutes.
In Morrowind however, I got pretty bored on the way from Seyda Neen to Balmora. In Morrowind, there were multiple occasions where I actually tried to do something else while moving from A to B. Vivec was worst, of course. I don't believe I've ever had a more boring gameplay experience than travelling between cantons. Seriously, what the hell? Consequently Vivec is the place where I stopped playing Morrowind.
I'm not sure there is an insight here, unless it's this: No matter how Bethesda does it, it sucks because it's Bethesda doing it.