The conversation system used in Skyrim's quests made the game feel a bit more immersive as NPCs were not only conversing with you, but with other NPCs as well. In Morrowind, obviously there are no instances of this since this type of system did not exist.
I'm proposing the idea that certain quest dialog can be expanded upon to have NPCs feel more alive as they speak with eachother during certain scripted moments of quests.
What do you guys think?

I saw a mudcrab the other
I saw a mudcrab the other day...