Morrowind ugly? Are you guys drunk(more than usual, I mean )?
By today's graphical standards, perhaps. But I frequently read posts here about people playing Fallout, Baldur's Gate, Torment and even older 3D games like X-Wing or Ultima Underworld. No one can convince anyone that Morrowind is uglier than those. It looks even better than NWN! And if anyone finds that Morrowind is uglier than all those than mods can be downloaded for free that will remedy this "problem".
The only problem with Morrowind for me was that you walk way too slow in the beginning, which actually hurts the exploration part. This can be fixed simply by playing(with spells, enchantments or upgrading the Speed attribute) or by downloading a mod that fixes the problem.
The story is very good but I found it was hurt by the huge landscape over which it takes place, like butter spread thin over too much bread. You can also lose the thread of the story amongst all the sidequests(over 300, mostly fetchings but if you enjoy NWN you shouldn't care...).
Play it, if only to try it.