For my part, I like Oblivion better than Morrowind - but Skyrim is FAR ahead of both of them.
I'm with you on that. I enjoyed Morrowind and both the official expansions. But I never had a desire to revisit that game and I still don't.
Anyway, I'm glad I checked this forum as about 3 weeks ago I started a brand new play through of Oblivion. I'm about 35 hours into it with my custom Battlemage.
I have the game modded pretty good this time around. My first playthrough of the game back in 2006 was just the vanilla game. Most of my mods center around UI improvements. They make the game so much more enjoyable by providing better levels of feedback and efficient ways of carrying out repetitive actions.
I am using DarnifiedUI, a mod that puts a mini map on the main screen, a mod that improves the alchemy interface, and a mod that allows you to ctrl and shift-click through barter transactions and inventory management (that mod alone, while not very glamorous, is quite awesome).
The remainder of mods I'm using affect visuals. Water effects. Underwater effects. Seeing through windows when inside an interior cell. Things of that nature.
All that said, I am also use Oscuro's Oblivion Overhaul as the sole mod that changes gameplay. I am glad I'm using it as it truly does give a much better sense of character progression.
Like many other before me, if you played vanilla oblivion that's one thing, but the game is substantially improved, feels almost like new (except for the visuals) in some respects.