http://www.uesp.net/wiki/Morrowind:Crossbows_and_Bolts
As for the idea that people only want it back because of nostalgia or because it was in Morrowind? No, that is stretching it, a lot. There is value in variation.
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"The Dwemer crossbow is an ingenious device that permits someone with only modest training and skill to fire a missile bolt massive enough to penetrate heavy armor. The Imperial Legion's mass-produced version is somewhat less effective, and most Imperial missile troops and hunters use the more popular short and long bows." - http://www.uesp.net/wiki/Morrowind:Garothmuk_gro-Muzgub
Looks like the crossbows were created by the dwemer.

