Agreed, Morrowind is the worst RPG I've played in the last few years (and I play quite a few), although it did have some stiff competition in Lionheart. Both of those games felt like jobs by about halfway through.
You must mean Morrowind's poor NPC dialog options, and their generally dull writing. Great world, though. TOEE was far worse, however. Pretty looking game, but with half its combat options broken when it came out, quests that seemed to be put in as an afterthought, and writing clearly done by a 8-year-old.