The main problem with Oblivion was that it relied almost completely on randomly-generated loot. For me, the random loot coupled with the extremely repetitive dungeons killed the need for exploration. Why look for new dungeons when you can just plunder one, go off for three days and do some other stuff, then come back and loot it again? After all, you have basically the same chance of getting that special item from Dungeon A as you do from Dungeon B.
That was the beauty of Morrowind: it had the perfect mix of randomly-generated loot and all manners of amazing items hidden in the nooks and crannies of the labyrinthine dungeons. Every cave, shrine, and crypt was unique in some way, and every room was just begging to be explored.
For example, in Morrowind, an ordinary-looking burial crypt could yield a secret door, which could yield a maze, which could yield a hidden cave, which could yield a treasure-filled viking burial ship in and underground lake, each one painstakingly detailed and a far cry from the cookie-cutter dungeons of Oblivion. And to the discerning eye, that curious crevice above the burial ship might contain a one-of-a-kind piece of armor...
All of you Morrowind players probably know what I'm talking about.
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