Ah yes, Morrowind the perfect...
No one said that.
Remember how you could join the Dark Brotherhood, the Camonna Tong, the Ashland Tribes, House Dagoth?
Enjoy House Dagoth: http://planetelderscrolls.gamespy.com/View.php?view=mods.detail&id=801
Enjoy the Dark Brotherhood: http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=6822
Disappointed that I can't join the Camonna Tong, but Morrowind can't be 100% awesome.
I felt like I was part of the Ashlander tribes by doing their quests and helping them out as part of the main quest, since they came to accept me and I
believe actually give you a rank in their faction too so...
Your entire premise is silly to begin with though. In Morrowind there were something like 12 or 15 joinable factions, full-length, 20 quests, unique rewards, sometimes different branches or opportunities to change the ending like with the Fighter's Guild. In Morrowind I had to be a pretty great mage to become the Archmage of the Mages Guild. It took time to advance in a faction and some of the quests could be tedious or uninspired but that's just to be expected - I felt a part of something. Compare this to the five or six Skyrim factions with about seven quests each, where I can become the leader of the Companions in a few in-game days, and a member of their inner circle after just a few in-game hours.
Remember how all quests were truly unique, not at all "go get item X"/"Kill person Y" quests?
Lol. Okay. Do you know what the Thieves Guild is? A few stealing missions followed by a few really long dungeon crawls with followers. Guess what the Companions are? A series of dungeon crawls through forts filled with members of the Silver Hand, followed by another dungeon crawl where you fight ancient Nord spirits. But let's draw an actual comparison between the two games.
Morrowind Imperial Legion: The first five quests have me resolve a hostage situation, solve a murder and avenge the victim, foil a shoestring conspiracy to kill the emperor, confront a reclusive wizard who is imprisoning the tax collector, and cure the blight affecting the kwama egg mine, which is the nearby town's sole economic asset.
Skyrim Imperial Legion: Sign up, go from fort to fort killing Stormtroopers- erm I mean Stormcloaks without names or faces.
You tell me which quests have more character.
So you see Morrowind does in fact handle quests and factions better - as actual guilds, with more thoughtful quests, and more involvement from the PC. Nevermind that it's eight years older than Skyrim, hardware, programming, etc. hasn't come that far since then, right? Why should we expect that they do better now than they did almost a decade ago, right?
(Checkmate sir)