I'm sorry, but the entire point of Daggerfall is to crawl massive dungeons. It may have some fantasy LARP elements, but the actual gameplay is more dungeon-heavy than Morrowind. Morrowind's short dungeons mean that the bulk of time is actually spent navigating the overworld, primarily travelling from towns to quest objectives.
I don't agree - you can spend a vast amount of time on the overworld in DF, depending on how you choose to play, and there are a huge number of quests that do not require dungeon crawling. Many of the tavern, merchant and noble quests take place within the city you're currently in, which can equate to a lot of gameplay spent simply roaming city streets looking for specific people or buildings and quizzing the locals. A number of guild quests are also overworld-only, especially for temples who'll ask you to go to people's houses to heal them or whatever.
Apart from the ability to break into stores and steal all of their goods, thief playstyles don't lose anything from Daggerfall to Morrowind
This is a pretty major thing to lose. Morrowind's stealth system is worthless (as is DF's, in fairness), and stealth is not generally a viable solution to quests (and, like in all TES games going back to Arena, you can just turn invisible and effortlessly ghost everything if you really want to). In MW, being a thief is a matter of walking into somewhere, making the stationary NPC look away from you, then taking everything. Or just going upstairs where you can't be followed by 90% of NPCs (and the ones who can follow you tend to move randomly). I think the only good thing MW does for thieves is add probes in addition to lockpicks, but they're both governed by the same skill so it's functionally a waste of time.
The crime system, which we both agree is lost in MW, is another obvious blow to thief gameplay. Fun thief gameplay surely requires an element of risk and tangible consequences for failure, which MW completely lacks, beyond paying a fine to a guard.
Might as well throw in the mention here that Morrowind removed lock bashing, which has always annoyed me because there's no reason for it. Maybe for balance reasons or something, but again, thieves are completely fucked in Morrowind, so they could at least have thrown us a fucking bone.
A pacifist playstyle is actually possible in Morrowind due to the intricacy of its spell effects, and there are lots of cool interactions with NPCs if you dig hard enough and are willing to not just bash things with your sword. For instance, you can use the Calm spell effect on an NPC and then open dialogue, Intimidate them in order to lower their 'Fight' variable, and then actually have them be permanently pacified.
Yep, that's cool. I don't hate Morrowind, despite how it might sound - I like the whole series, with even Oblivion (my least favourite) having some appeal. I just think it's a tragic step back from DF in the majority of ways, and I do think it largely fails to meet its potential on its own terms.
My point was that you'll still be roleplaying someone who walks across the same bit of overworld and dives into random dungeons, only instead of smashing things with an axe (as the good Todd intended), you'll be casting Calm on them. This is fun, and forms most of the appeal of Todd-era games (I've done a complete all-dungeons-explored pacifist run of both Skyrim and Fo3 and I absolutely loved both experiences), but the game is still very much combat-focused - which, again, DF is far less so.
Speech is useful only for the crime system
This isn't true; there's an enemy pacification chance with each language skill, including Etiquette and Streetwise (which is based on enemy class - Knights and such go for Etiquette, Rogues and such go for Streetwise). Etiquette and Streetwise also play a big part in NPC dialogue, meaning you'll get more use out of the Polite/Blunt options when applied to the correct social class.
I'm not clear on whether or not you meant this in the context of thief gameplay or in general. But all that I just mentioned is useful for thief gameplay anyway, especially since if you're playing as a dedicated thief, your major skills might all be non-combat (eg stealth, streetwise, lockpicking) and so talking an enemy down via streetwise will be more viable an option to you than trying to fight them. Remember that pacified enemies may also fight on your behalf and protect you from enemies who you failed to talk down, another useful mechanic for a thief whose skills do not lie primarily in combat.
One thing to consider about Morrowind's dungeons, however, is that they are realistic.
Which doesn't translate into enjoyable gameplay, most of the time. I don't have any problem with smaller, tighter dungeons - I liked quite a lot of Skyrim's, which are often even smaller and more linear than MW's - but MW's dungeons are typically so generic and dull that they may as well have been procgen'd (which I've heard they sometimes are, though I've never properly looked into that).
I think the issue - which again, is replicated in Oblivion and Skyrim - is that dungeons in MW almost never actually allow you to use your non-combat skills in any meaningful way, nor do they offer any other form of gameplay. In Daggerfall, your language sklills automatically roll when you're in range of an enemy, as does your stealth skill. Navigating vertically means you'll have to use either your climbing skill or some form of magic (and if you don't have these, you might simply fail the dungeon). Underwater passages mean that not only will you require a solid Swimming skill, but you also might have to reduce your carry weight to avoid sinking - which means, for heavy armour characters, that you might have to go in naked, with all the risks that entails (and if you wind up getting teleported away, you'll now be naked in the middle of a new location with no idea where your armour went). Your core attributes play a part in all of this, of course - Strength (or Speed? I forget, it's STR in Arena) plays a role in how far you can jump, Agility plays a role in most of the athletic skills, and I'm sure one of them determines how long you can hold your breath underwater, though don't ask me which.
At all times in a Daggerfall dungeon, you feel your characters' skills coming into play, and some characters simply aren't capable of completing some dungeons - this is a very good thing, IMO.
In addition to all this stats-based gameplay, the player is also constantly engaged in not only finding their way through the labyrinth and having their sense of direction tested, but also keeping an eye out for secret passages, some of which will hide the quest target behind them. There is, of course, also the very real chance of becoming actually lost - or worse, trapped at the bottom of some form of pit which you lack the skill to climb out of, or teleported into an area which you cannot escape in any immediately obvious way. This means that preparation also plays a key role - a mark/recall spell or enchantment is ideal, but you may also need levitation gear or potions and other things to help you navigate hazards which your character's skills may not be suitable against.
Morrowind, meanwhile, plays exactly like every other Todd-era Bethesda game - dungeons are small, combat-focused romps to the finish line, with the occasional detour or two into a side area. I remember one or two dungeons having levitation areas and gaps that could be better cleared by characters with high acrobatics, but for the most part it's all just the same shit.
This is just flat-out incorrect. Faction reputation exists to keep track of how many quests you have completed for factions, and the factions all like and dislike one another to varying degrees. An Associate in the Mages Guild will be disliked by Telvanni characters, but the Archmage will be hated by them. Like the issues with disposition in general, this is somewhat negated by how much of a disposition boost you receive from global Reputation, but it certainly exists and has an effect on gameplay, especially at low levels.
I'm aware of the internal system which determines advancement. I didn't know that it ever affected disposition of other NPCs outside the guild in question, especially because MW seems to very rarely have real consequences for low disposition (whereas in DF, people from guilds/social classes you'd alienated would outright refuse to interact with you at times, and you could be refused service). Are there any examples other than the one of the Mages' Guild and Telvanni?
Either way:
(which you clearly didn't realise due to a lack of understanding about the game's mechanics)
Give it a rest. I never noticed the effects of this mechanic while playing the game. Which perhaps isn't surprising if, as you suggest, it's rather isolated and inconsequential. Daggerfall makes it hard to miss the consequences of reputation (faction, class, and crime), given that they continually have material effects on the way you play the game, the obstacles you'll face, and the options available to you.
I'll revise it from "there's no faction reputation" to "there's no faction reputation that I know of outside the Mages' Guild vs Telvanni one that I've just been told about", if you like. If there's other examples I missed, I'll gladly hear about them.
Given that faction reputation exists (which you clearly didn't realise due to a lack of understanding about the game's mechanics) your only real complaint here is that Morrowind lacks social class distinctions (fair enough) and that you can brute force your way through a lot of dialogue with the Bribe option.
The complaint is far more than that, and far more than just Etiquette/Streetwise being boiled down into "Speechcraft" (which
is bad in itself). Instead of being able to ask about literally any topic, person or location and receive directions, you can only ask about a handful of keywords with each NPC. DF's NPCs had copy/pasted dialogue (based on their class and such), but you could ask them just about anything you wanted, and get directions to any establishment in a city or any quest target, as well as ask for information about people and places pertinent to your current quest. And, crucially, you were rolling skill checks the whole time. In Morrowind, you can't do any of that.
Like with many things in MW, it's twice as annoying because it's a squandered opportunity. The tradeoff with MW is meant to be "yes, it's smaller and has less systems, but it's
handcrafted!!!". In that case, you'd hope NPCs, given that there's comparatively so few of them, would be relatively unique, and have unique dialogue and personalities (even Oblivion set out to attempt this by giving everyone one or two dumb unique lines when you asked about the city you're currently in - "I'm Cockius Suckius, and I run the local store here").
MW NPCs instead retain the lack of character of DF townspeople, but with a mere fraction of the interactiveness and options for the player. They're not even useful in the context of MW's much smaller worldspace and settlements - you can't even ask for directions to a specific person or place, you just have to rely on the broad keywords like "services" and "specific person" without being able to specify the person or place you want.
It's hard to overstate how much the keyword system sucks. The worst of both worlds - it's got the genericness you might expect from a roguelike, but lacks the wealth of options. The Camonna Tong supposedly revile me, yet they'll politely tell me about the history of Balmora with the exact same boring wiki dialogue that the nice old lady outside had.
Morrowind has more modes of transportation than Daggerfall and learning how to best navigate the fast travel network is arguably more interesting than Daggerfall's point-and-click fast travel, whose only real mechanical consideration is whether you might need to travel recklessly to make it back to a quest giver on time.
The DF travel mechanic has quite a bit going on - travelling recklessly means you don't heal and your health conditions worsen. So if you've been poisoned or are diseased, you've got to start making tough choices about how to get to your target without killing yourself, and might have to make a detour to a temple at "Cautious" speed in order to heal (costing you a day or two). If you're already wounded and travelling into danger, Reckless could again get you killed by making you arrive with low health in a hostile location. Ships also get you places fast, but cost money. Also, remember DF has actual controllable modes of transport - you can board your own ship, you can ride a horse or a wagon through town, etc. Morrowind's are all just a menu that teleports you to a new location.
MW's fast travel network is cool on a purely geographical level in that you can see how the boats move along the coastlines and how the Silt Strider networks are laid out. But again, because the world is utterly static, the fast travel systems become a way to cut out endless boredom, rather than a mechanic all of their own. Your reward for learning the fast travel system is that you reduce the amount of empty, already-cleared overworld you have to travel, as you learn where ports, docks, and Mages' Guild teleporters are.
If the world was not completely motionless, the fast travel system might be more interesting - if travelling entailed some kind of risk, or there was a day/night cycle that actually affected anything, or if any quests or world events were timed, or if there were regional holidays and special occasions on certain days of the week or dates in the calendar (as Arena and DF had), or if there was just
anything or
anyone in the world other than the player character who actually did anything at all, then taking a boat or a silt strider would be a wise choice. As it is, though, the only risks from travelling in Morrowind are slipping into a coma as you walk from Seyda Neen to Pelagiad for the fiftieth time.