Okay, I loved morrowind. And I just recently got Oblivion and have been playing thorough.
So then...
1. Every mages guild should have a spellmaking altar and an enchanter. (no enchant altar. Enchant should be a skill like it was in morrowind. Where the more complex the enchantment the less chance of it working. Also enchanted items recharge over time. If not it shouldn't be 1 gold per charge. It should be 1 gold per 10 charges. So it costs 100 gold to recharge my sword. Not 1000.)
2. Stat based advancement in factions. You should have to actually level up your abilities before you can become the grey fox or archmage. No tutorial dungeon. In morrowind the tutorial was two rooms. Dungeons suck ass when you haven't even chosen your class yet.
3. DO NOT START THE MAIN QUEST IN THE TUTORIAL!!! That was the lamest thing about Oblivion, that the main quest started right away whether you want it to or not. In Morrowind you could completely ignore the main quest.
4. Reduce level scaling. Some areas should have stronger enemies all the time. A bandit camp should always have bandits. If you go there at level one there should not be mudcrabs and rats in the bandit camp and no bandits. Some loot should be in place all the time.
5. Esoteric weapons and armor. In morrowind I liked to get the Redoran watchmen's helm. It was a mushroom head. I thought that was awesome. It didn't match anything else in the game, and that was okay. Not every suit of armor has to be complete. But more variety of armor would be great. On that note bring back medium armor. Morrowind has so many more varieties of armor than oblivion. Bring that back.
6. The character generation sliders should not affect other sliders. It really messes with fine control if every time you touch one slider half the others move as well. Let us move different features individually without affecting the rest of the features too drastically.
7. Change the menus back to how morrowind was. Where the inventory shows 50 items at a time instead of six. And you can drop quest items. (in the final thieves guild quest I found the arrow of extrication after opening the door with it and picked it up. couldn't drop it or fire it again. It just sat in my inventory.)
8. Give us the ability to delete spells. I can't count the number of times I've messed up a spell only to find out later and then not be able to get rid of it even though it is useless. Like Heal 25 pts on touch, instead of on self. LET US DELETE THEM.
9. Bring back the unarmored skill, make shield spells last longer for the same amount of mana. Mana costs should increase less the higher you go, not more. As you get to the higher level spells they should only cost 1.5 times as much mana for 2 times as much power. Magic in Oblivion is only useful in the lower levels when your willpower regeneration is actually worth it.
10. Birthsign increases to mana are supposed to be either +1.5 * int, +1 * int, or +.5 * int. An increase of 50, 100, or 150 doesn't work once you level up high enough that spells cost 350 mana, because then that is the highest amount of mana you can get. As your intelligence increases you birthsign bonus should also increase. Spells take too much mana at higher levels to actually be useable.
11. Repair hammers and lockpicks should have a number of uses, not a hit or miss system. It sucks to have ten repair hammers and low armorer skill only to break every single one trying to repair your first piece of armor. Likewise failure should not break a lockpick, only lower durability. On that note NO MINIGAME!!! The minigame is stupid and illogical, why does time freeze whenever you try to pick a lock no matter how many you use.
12. Make speechcraft worthwhile again. No minigame, and you can choose which kind of speechcraft to use, not be forced to use them all at once every time. Using intimidate successfully should raise their disposition and make them not attack you. using Admire successfully should just raise disposition. Using Taunt successfully should make them attack you, without giving you a bounty. And of course bribe will just be a high success way of raising disposition. but make it more logical increments. Like bribe 10 gold, or 100 gold. Not bribe 7 for 13 bonus, bribe 12 for 7 bonus. You shouldn't know how much it is going to give you. AND DISPOSITION IS NEVER MAXED!! You should be able to keep bribing no matter what.
13. More variety in the caves. I swear to god every cave in Oblivion is exactly the same. They all have that stupid platform with the beam of light and same stupid three stalagmites. Bring back daedric and dwemer ruins along with the Ayelid.
14. Make the Daedroth skinny again. Now they look more like an Alit with arms than a sinister crocodile demon. In morrowind they looked scary and evil and could shoot poison. In Oblivion they look bloated and stupid. Scamps are supposed to be pathetic. No fire balls. Make dremora less pouty. They looked much cooler in Morrowind.
15. IF IT ISN'T NAILED DOWN I SHOULD BE ABLE TO LOOT IT. I hate in the beginning that they keep confronting you with dead Blades and you can't take their armor. The other guys left, what's keeping me from taking Captain Renaults swanky gear. Same with Dremora, if you aren't going to make their armor part of their bodies then I should be able to loot it. In morrowind the dremora look like they are wearing daedric armor which is fused into their skin. In oblivion it looks like they are wearing actual armor, because they are.
16. More adventurers!! Why am i the only person in the world going out and stealing all the awesome loot? Better yet give the option to team up with other adventurers.
17. Merchants should have a set amount of gold that is kept somewhere in the shop. If you sell them things the amount of gold they have should go down, if you buy something it goes up. Also bring back morrowind bartering where you can buy and sells lots of stuff at the same time and use the cost of the things your selling to offset the cost of what your buying. Like selling a daedric weapon for 40000 gold then buying armor worht 39000 gold so you get 1000 gold. That way you can actually sell the higher level gear for what it's worth. No more merchant price caps at 6000 gold.
18. Make the underwear less ugly!! It doesn't have to be super sexified. But please no more giant diapers. You would think someone would learn to sew unerwear out of fabric instead of untanned bear hides.
Pretty much all I want to keep from oblivion is...
-better graphics.
-spellcasting while holding a weapon
-Block
And that's it. That is all that I can think of in Oblivion that is worth keeping. The only changes that it made that were good. Everything else should feel free to revert back to the Morrowind system.
last thing, set it somewhere new and interesting. Like Black Marsh, or Elsweyr.
So then...
1. Every mages guild should have a spellmaking altar and an enchanter. (no enchant altar. Enchant should be a skill like it was in morrowind. Where the more complex the enchantment the less chance of it working. Also enchanted items recharge over time. If not it shouldn't be 1 gold per charge. It should be 1 gold per 10 charges. So it costs 100 gold to recharge my sword. Not 1000.)
2. Stat based advancement in factions. You should have to actually level up your abilities before you can become the grey fox or archmage. No tutorial dungeon. In morrowind the tutorial was two rooms. Dungeons suck ass when you haven't even chosen your class yet.
3. DO NOT START THE MAIN QUEST IN THE TUTORIAL!!! That was the lamest thing about Oblivion, that the main quest started right away whether you want it to or not. In Morrowind you could completely ignore the main quest.
4. Reduce level scaling. Some areas should have stronger enemies all the time. A bandit camp should always have bandits. If you go there at level one there should not be mudcrabs and rats in the bandit camp and no bandits. Some loot should be in place all the time.
5. Esoteric weapons and armor. In morrowind I liked to get the Redoran watchmen's helm. It was a mushroom head. I thought that was awesome. It didn't match anything else in the game, and that was okay. Not every suit of armor has to be complete. But more variety of armor would be great. On that note bring back medium armor. Morrowind has so many more varieties of armor than oblivion. Bring that back.
6. The character generation sliders should not affect other sliders. It really messes with fine control if every time you touch one slider half the others move as well. Let us move different features individually without affecting the rest of the features too drastically.
7. Change the menus back to how morrowind was. Where the inventory shows 50 items at a time instead of six. And you can drop quest items. (in the final thieves guild quest I found the arrow of extrication after opening the door with it and picked it up. couldn't drop it or fire it again. It just sat in my inventory.)
8. Give us the ability to delete spells. I can't count the number of times I've messed up a spell only to find out later and then not be able to get rid of it even though it is useless. Like Heal 25 pts on touch, instead of on self. LET US DELETE THEM.
9. Bring back the unarmored skill, make shield spells last longer for the same amount of mana. Mana costs should increase less the higher you go, not more. As you get to the higher level spells they should only cost 1.5 times as much mana for 2 times as much power. Magic in Oblivion is only useful in the lower levels when your willpower regeneration is actually worth it.
10. Birthsign increases to mana are supposed to be either +1.5 * int, +1 * int, or +.5 * int. An increase of 50, 100, or 150 doesn't work once you level up high enough that spells cost 350 mana, because then that is the highest amount of mana you can get. As your intelligence increases you birthsign bonus should also increase. Spells take too much mana at higher levels to actually be useable.
11. Repair hammers and lockpicks should have a number of uses, not a hit or miss system. It sucks to have ten repair hammers and low armorer skill only to break every single one trying to repair your first piece of armor. Likewise failure should not break a lockpick, only lower durability. On that note NO MINIGAME!!! The minigame is stupid and illogical, why does time freeze whenever you try to pick a lock no matter how many you use.
12. Make speechcraft worthwhile again. No minigame, and you can choose which kind of speechcraft to use, not be forced to use them all at once every time. Using intimidate successfully should raise their disposition and make them not attack you. using Admire successfully should just raise disposition. Using Taunt successfully should make them attack you, without giving you a bounty. And of course bribe will just be a high success way of raising disposition. but make it more logical increments. Like bribe 10 gold, or 100 gold. Not bribe 7 for 13 bonus, bribe 12 for 7 bonus. You shouldn't know how much it is going to give you. AND DISPOSITION IS NEVER MAXED!! You should be able to keep bribing no matter what.
13. More variety in the caves. I swear to god every cave in Oblivion is exactly the same. They all have that stupid platform with the beam of light and same stupid three stalagmites. Bring back daedric and dwemer ruins along with the Ayelid.
14. Make the Daedroth skinny again. Now they look more like an Alit with arms than a sinister crocodile demon. In morrowind they looked scary and evil and could shoot poison. In Oblivion they look bloated and stupid. Scamps are supposed to be pathetic. No fire balls. Make dremora less pouty. They looked much cooler in Morrowind.
15. IF IT ISN'T NAILED DOWN I SHOULD BE ABLE TO LOOT IT. I hate in the beginning that they keep confronting you with dead Blades and you can't take their armor. The other guys left, what's keeping me from taking Captain Renaults swanky gear. Same with Dremora, if you aren't going to make their armor part of their bodies then I should be able to loot it. In morrowind the dremora look like they are wearing daedric armor which is fused into their skin. In oblivion it looks like they are wearing actual armor, because they are.
16. More adventurers!! Why am i the only person in the world going out and stealing all the awesome loot? Better yet give the option to team up with other adventurers.
17. Merchants should have a set amount of gold that is kept somewhere in the shop. If you sell them things the amount of gold they have should go down, if you buy something it goes up. Also bring back morrowind bartering where you can buy and sells lots of stuff at the same time and use the cost of the things your selling to offset the cost of what your buying. Like selling a daedric weapon for 40000 gold then buying armor worht 39000 gold so you get 1000 gold. That way you can actually sell the higher level gear for what it's worth. No more merchant price caps at 6000 gold.
18. Make the underwear less ugly!! It doesn't have to be super sexified. But please no more giant diapers. You would think someone would learn to sew unerwear out of fabric instead of untanned bear hides.
Pretty much all I want to keep from oblivion is...
-better graphics.
-spellcasting while holding a weapon
-Block
And that's it. That is all that I can think of in Oblivion that is worth keeping. The only changes that it made that were good. Everything else should feel free to revert back to the Morrowind system.
last thing, set it somewhere new and interesting. Like Black Marsh, or Elsweyr.