There's hidden dice rolls, then there's Morrowind. You can't possibly fail to realize there's a dice roll mechanic when you can repeatedly swing and miss at a target two feet away with a four foot greatsword
And when I refer to the game, I refer to its mechanics. In that respect, Morrowind was stunningly terrible.
It's the same principle as clicking to attack someone in a party-based RPG, and your attack missing. The only difference there is you get a "MISS" instead of "10" or whatever for damage.
What games from 2003 had a world anywhere near as large as Morrowind, and significantly better mechanics? I fear you're trying to compare it to the games we have now, or even Oblivion, and that's just not possible from a gameplay standpoint.
It's clunky, but every game back then was.