Nice mod. But there are a few things missing (or, at least, not yet implemented). As a long-time Morrowind player, I find that the Morroblivion package has some issues:
-- with Morroblivion being an ESM, Oblivion cannot handle things too well, eg. race altering mods like Ren's or COBL Races, which get partly un-done by Morrowind_ob.esm and this in turn "enforces" diverse crashes --- ever wondered why Bethesda integrated Shivering Isles into Oblivion.esm? That's exactly why. You should split the Morrowind_ob into a library ESM and the actual landscape/people/quest ESP, then there would be no need anymore to load the ESM first (which clashes with diverse other mods). You ought to change this.
-- armor: many armor types (even if they are from Vvardenfell Imports and not Morroblivion) are not as convincing or good as the original Morrowind ones. Immersion goes missing here.
-- missing Armor: Chitin greaves, Redoran Watchman armor, the other Bonemold cuirasses (Armun-An, Gah-Julan, Redoran Founder, etc), and some others
-- missing the eight official Bethesda DLC (Entertainers, Adamantium Armor, Area Effect Arrows, Ebon Ore Artifact, LeFemmArmor, Propylon Master Index, Siege at Firemoth, Bittercoast Sounds) and the addition of the "Firemoth" island chain to the Vvardenfell map
-- Fast-Travel is not disabled while in Vvardenfell (would be more alike to the original TES3, since there are enough methods of travel available and the immersion is deeper).
-- Regarding your statement, Oblivion would have the "superior" engine: This is wrong, and *only* correct regarding graphics. In all other respects, it is definitely inferior, eg. in the clothing layering, the interaction/talk system, the magic system (except for spellcasting), scripting, the ease of creating, adding, and handling mods. Don't put such statements on your site when everyone knows that they are nonsense. Playing "Morrowind" while running Oblivion is nice and fun, but I will rather quit TES4 and run TES3 when I want to play "true" Morrowind. Playing Oblivion with the TES3 engine, now *that* would be cool... ;-))
In all other respects: keep up the good work.
Greetings, rekuli

I once also suggested
I once also suggested disabling fast travel (which you can do yourself) but I soon found myself missing fast travel. Oblivion did improve on some things over Morrowind, such as graphics, combat, AI, and I believe fast travel is a good thing.
Imagine going to that remote necromancer stronghold Vas which is a long journey in itself only to travel all the way back to civilization. Traveling back from a location in Morrowind was always a bee-atch, and I think Oblivion did something right there.
Now as far as TES4 being in TES3's engine? Are you kidding me? Yeah, because I want to do that awesome complex Morrowind combat, which is slash, hack, and stab.
Don't get me wrong, Morrowind has a way better world, story, and atmosphere, but the engine sucks. That's why we use the Oblivion engine. I know, they dumbed the skills down and took a few cool weapons out, and I don't agree with that, but overall Oblivion's engine is hella better. Just look at the walking animations of Morrowind, or how people just stand around all day and night doing nothing.