Color me crazy, but Morrowind was developed for the PC and console at the same time, and when I play it on the PC, it feels like a real PC title. The interfact works rather well on the PC, and I don't believe it was dumbed down for a console market.
I think the NPC dialogue system and combat had major flaws, but console games are rarely non-linear and allow for the exploration that Morrowind offered. GTA is the exception, but GTA has really good action.
I don't think we need to demand that developers overlook consoles, as developers need to get paid so they can continue to make games. I think developers need to stop dumbing down games period.