I too loved the way Morrowind handled the journal. Though, I will admit if I stepped away from the game for a few weeks I would be absolutely lost as to what I was doing, what quests I was on, and what I had completed.
I would propose a mix with the best of each. Give us the look and descriptions from Morrowind, but instead of an alphabetical topics tab like Morrowind, replace that with a list of the current quests you have acquired and completed like Skyrim. Once selected it would consolidate all entries from your journal for reference.
For instance: Say, over the two-hundred pages of entries you have in your journal, there are five spread out about a specific quest. If you select the quest you will only see those specific entries. So you would skip from page 15 to 24 to 37 and so on.
As for the game being overwhelming, that is what I love about huge open world RPGs.
