I believe it had a good story (although Morrowind's was better admittedly, that's why I'll jump on it from time to time). However, you need to take the graphics out of the equation. They are solely good because of the today's technology, they were not implemented in expense of story, the story was simply worse that Morrowind's. The core story was imaginative, but I concede characters like Delphine were weak. What I was saying was that for any true gamer, graphics are not what's important (look at Minecraft's success!).
I think they should have done a main quest around dealing with the Thalmor, rather than putting it ominously in the shadows. I hope Dawnguard relates to this.
Also, I think the chronological time line is getting stale. This is why I am relieved that TESO is set in the past. It will neither damage the single player game, and it provides more diverse story opportunities in the different Tamriel culture.