One thing I noticed when playing Skyrim was how little impact the player actually has on the world. For example, you could join the dark brotherhood, kill the Emperor, and then sign up for the imperial legion the very next day. (sorry if I spoiled that)
This could not have happened in Morrowind. relationships were hard to form, and took time and effort. If you made someone dislike you, then that was pretty much it. No more conversations or services from them until you made things better. This also applied to when you got involved with a specific guild or house. The higher you got up the ranks, the less the other houses or guilds wanted to deal with you.
This made the game much more immersive and dynamic, and made the characters more interactive. It was a major feature in Morrowind, and was dumbed down incredibly in Skyrim. If it is not included in some form in Skywind, its really going to show.
I'm no modding expert, but I get the feeling its going to be hard to execute with Skyrims engine. I think you could do it with the faction system the game has, but there is going to be a LOT of variables to muck around with.
I hope you guys can include it, because the atmosphere in Morrowind will be lacking without it. From what I've seen though, I'm sure you guys are talented enough to pull it off!
Good luck!

TheDjango wrote:
This! So much this! I hated how I could just become the leader of every guild if I wanted to without any of their quests or personal ideals of the factions conflicting with one another.