It's just Fallout 3, without guns. No, but really it's not as fun as Morrowind, but good for what it is.
I liked the realistic physics, though sometimes things looked a little cheesy, like when you kill somebody and they fall off a ledge and seem to float like a feather to the ground. But if you jump, you will fall at the right speed. There are a few minor glitches and crashes, but nothing that ruins the game.
You better have a good gaming computer if you want to play this though, I had to edit the config file a bit to optimize the framerates and I had a pretty good rig for the time. The thing is, at least you can make advanced adjustments to the graphics, using a text editor, if you have a slower computer. I wouldn't try to play this game with anything less than a 256mb card and 1gb RAM, or you're better off playing Morrowind.
All in all, it's a great adventure, not quite the same as Morrowind, it tries to be, but it is lacking something. I think it gives you too much freedom to move around, you don't have to work very hard to get where you want to go. You just click on the map and teleport. The horses were a neat feature, but I hardly ever used them.
If you had never played Morrowind, then there wouldn't be much to complain about in this game. It's a whole new adventure of its own, with cool looking weapons and armor, and challenging AI combat. The story is a little repetitive, going into the Oblivion gates over and over, each one looking almost exactly the same inside. The story was sort of quick to beat, but it was worth playing, no doubt.