That makes sense, but for some reason, Solstheim feels smaller then it did in Bloodmoon to me. When I did the quest involving Ft. Frostmoth, I got there much faster then I did in Bloodmoon. The Skaal village also feels smaller and more narrow then it did in Bloodmoon.
Everything in Morrowind is more stretched out with a
lot more empty, flat space. Fourth Era Solstheim is much more dense. Also, the endless fog made everything in Morrowind seem larger than it was.
Reason? Kagrumez was buried underground, Nchardak was underwater, Fahbltharz was buried within the mountain.
Actual reason? Diversity! Plus it gave Beth and opportunity to add some really sweet dungeons.