This is my sentiment as well.
The concept of a completely static world is fine in theory, but in practice it isn't so good. It leads to railroading.
With static everything you will wander around, enter a dungeon, get killed in one hit, load your game and try the next dungeon and chances are each dungeon will be either ridiculously easy or ridiculously hard. There is little chance of finding a relatively challenging dungeon in a completely static environment. In Morrowind this problem was very apparent, but ignored for the sake of the overall experience. Oblivion introduced us to scaling gone wrong, but it had the right idea. In Morrowind you were either fighting something way too easy that it was no threat, or it was way too hard and you had to drink 50 bottles of Sujamma to kill it or just give up and die.
You're overlooking a crucial factor here. Morrowinds equipment, spells, skills and gameplay was very diverse. So what it offered that Oblivion, and so far Skyrim haven't is an opportunity to use your noggin to think of an alternative way to get past these difficult situations.
For example, if you were an axe wielding Orc you could use your Berserk power, stack that with some strength and health modifying potions, and then if you could get lucky you could fell a foe many times as powerful as you. What's more satisfying than that for a combat based character? Especially when your reward at the end is an amazing bit of kit?
Morrowind got this right.Another example, there was a Daedric shrine in the mountains surrounding the Red Mountain. This shrine didn't follow the more common format of having a ceiling about 30 foot above you. Instead it was immensely tall, and way above the entrance you could see rocky outcrops in that familiar Daedric architectural style. If you were lucky/organised enough to have a levitation potion you could then take a look at the higher parts of the shrine. If you did this, you'd be rewarded with another fantastic bit of kit.
Morrowind got this right.Another example, there was a unique pair of boots called the 'Blinding Boots of Speed'. They boosted your 'Athletic' ability to hughe levels meaning you could sprint incredibly fast. However, they had a crucial failing, they literally cast a 100% 'Blind' spell on the user so you couldn't see where you're going! "What's the point in that?" you ask? Well, enterprising and skilled enchanters could enchant a peice of jewellery, clothing or misc equipment to dispel the 'Blindness' while wearing the 'Blinding Boots of Speed'. This meant you were now super fast but could see where you were going! Now, finally my point. This meant you could outrun practically anything, no matter how many 10's of levels above you they were (you can probably see where I'm going with this). So, you'd come across a cave or location with enemies far too hard for you, because of this you just knew there would be an awesome bit of kit somewhere at the end of it. So, you took a chance, donned your boots and legged it through to find a 100 strength locked chest. That's where you'd either cast a spell using your 100% enchanted unlocking amulet (you remembered to bring it didn't you?) and obtain an incredible piece of kit. Alternatively the incredible piece of kit might be hidden away in an alcove, making finding it even more incredible!
Anyway, the point is, these experiences don't exist in Oblivion. Bethesda presumably thought this system was bad, so they adopted levelled loot scaling. Disgraceful. Skyrim so far is better, but it still uses elements of this travesty of a system. This is why we want rid of it. We want the old experiences back. Also your argument is partly void, as long as areas/game concepts are designed to allow you to
think & overcome.
Ta