In a game that will put your character around level 70 when you are a "master" I cannot see level 10 as a later level, no matter how pathetic the enemies are. I simply call that a horrible way to handle enemies.
What definition of "master" are you using here? If you mean the peak level you can possibly reach, then sure 70 to 80 is about where it's at. But once you hit level 20 to 25 in Morrowind, you can ace anything the game throws at you. The fact that you can still get stronger only matters in the context of the expansions where being level 40 to 60 is more important.
So in terms of the challenge presented, not the theoretical limit, I'd say level 10 is fair headway into the progression of your character.
I agree that some of the choices in the beginning of Morrowind will have more effect than in early Skyrim, but the sheer lack of consequence at later levels is an argument against the games complexity. I cannot see how a game that have you start "unique" then turn you "bland" is more complex than one that starts you "bland" and turn you "unique".
I'm not sure what you mean by "bland". If you mean a thief will always end up in the same place regardless of race, then sure. That's no different in Skyrim, however. If you mean all character's inevitably become ace of all trades, then I'd partially disagree. You could easily become a powerful character in Morrowind without maxing everything, though the game certainly incentivised playing outside your class. That's something I'd hoped they would address. They haven't.