I know everyone believes that quest markers are there to hold your hand, and allow for the casual crowd, or kids to succeed in the game... which is strange seeing how kids are freakishly good at games compared to my abilities at that age.
However this is my take. Quest markers give you direction. I know many people get overwhelmed when they start an open world game, and I've experienced this myself. I almost always get burnt out because the lack of direction means I spend hours rummaging through the forest picking plants, or finding new quests and towns.
Can the quest markers be too revealing? At times yes, but at the same time not everyone likes to run around with directions given to you buy a flipping drunk person... Morrowind.
I agree with this.
No, Morrowind was not "too hard" for me to figure out.
And maybe that's the point - everything was so clear and to the point in Morrowind, with yellow squares on your map telling you where your destination was anyways, that I really don't see a difference.
The only thing that -sometimes- gets me, is the POI's, which tell me "hey, there's a dungeon somewhere near you" which can feel weird, but I don't think it's a dumbing down, and like you said, it gives a sense of direction. I can run in a random direction, with no real purpose, find a POI pop up on my compass, and all of a sudden that's my new objective, to seek out that location (which it's as simple as "running towards a marker", because the landscape forces you to find a capable path to your objective).
I really don't mind it at all, I don't see it as "hand holding" or "dumbing down", and I really hate those terms to describe features of these games. They are incredibly insulting.