I greatly prefer the handcrafted worlds of Bethesda's later games. I wasn't even half way through the main quest of Daggerfall before I started using cheat codes to warp to the end of dungeons, and after a few jaunts around the less central provinces I gave up visiting them as well - every location felt the same.
I do realize that different people have different tastes, and for some the breadth of a world compensates, but for me it didn't take long before Daggerfall's world felt surprisingly small.
I'm not going to disagree to the possibility of feeling that way, because it's highly probable. To me it isn't so much the execution of Daggerfall as it is the idea, heart, and attempt to cover as much ground as possible in terms of content and dynamics. But look at Diablo 2 for instance, if you ever played it a great deal online (and I guess you can look at Diablo 1 as well) you know that the ability to randomly generate aspects of the levels is the only thing that made the game playable over time. If they took Skyrim as it is, and added a random generator to populate cities, increase their buildings/size, and to insert randomly generated terrain between PoI, it would have made a game worth more than 2 weeks of my time.
Hand crafted content is a must, but it is just too limited. It's like ancient architecture: beautiful, strong, massive, detailed, few and far between, and highly unpractical. Blend in some random generation for depth, and to accentuate the PoIs by contrast.
Edit: For a linear story-telling, character building game, 100% handcrafted works. For a game that wants to be 'huge' and free roam, we need a compromise.