I was wondering if we could have any updates on the status of levitation and jump spells? I know that it might be a bit difficult and that you guys are weighing your options but it was exactly that ability that gave morrowind some of it's alien charm for me and a lot of other players too. So I propose some workarounds
You can add an object that shuts off flight around city walls, the walls are there for a reason and it can be argued that the houses would be wary of invaders. Using an invisible object like activator and scripting the flight effects to end as well as having a message pop up on the screen saying the player can't fly over it would be a method. The problem I can see with this is the jump spells but I think an invisible wall as much as everyone hates them would make sense with my mentioned message earlier.
Another idea is to have activators lining the city walls, the minute a player enters the activator it teleports them to the linked location in the exterior cell. The problem I could see with this is that city cell exteriors and exterior cell nteriors tend to be blotchy so some CS wizardry would be needed to make the exterior/interiors look normal.
Or just have things saying flight isn't possible here (on certain cells).

I want there to be an
I want there to be an invisible barrier around cities that has the same effect that overdosing on Skooma had in Oblivion. You are jumping straight towards the city, and then BOOM, you ragdoll uncontrollably and flop to the ground in a hilarious pratfall. As you pick yourself up out of the dust, you're completely humiliated, but the only thing that's really been hurt is your ego. The town guard standing on the wall laugh their heads off at you and point you towards the nearest city gate.
You ashamedly walk into the city as the guards continue to hurl gibes at you, while you can see out of the corner of your eye one of them pantomiming your recent failure, eliciting another outburst of laughter. You hope the worst of the insults are over, but word spreads quickly through the town, and before long, everywhere you walk you are met with snickering and mirthful glances.
As an ambitious adventurer, your purpose in coming into town was to restock your supplies and perhaps pick up a new sword before your next foray into the wilds and dungeons of Vvardenfel. As you go into the shop of the local blacksmith, you ask to see some of her finer items. She exclaims that she has just the thing you're looking for and disappears into the back of her shop to fetch something and returns a short while later carrying in her hands a wooden sword - a child's plaything. You stare at her in disbelief as she proffers the sword to you. She laughs and informs you that she wouldn't want you to hurt yourself with a real sword because they are, after all, quite dangerous. You leave in a huff and go to the local pub to unwind, but you still can't get any respect.
When you ask the barkeep to bring you his finest, (you are quite successful after all and have the coin to spare) he brings you a fortify intelligence potion and says it's on the house. You slam your fist on the bar and turn to leave. As you do so, the whole establishment erupts in laughter. You hurriedly make your egress as your face turns redder than a comberry. You'll never be able to show your face in this town again.