One of the most jarring things I noticed in Skywind, coming from Skyrim, was that SMIM (Static Mesh Improvement Mod) didn't work. For obvious reasons - the meshes and textures used were new assets. I'd love if there was a similar mod for Skywind. The reimagining of Morrowind has been brilliantly done and looks gorgeous, but low quality statics kinda ruin it for me.
What you've probably seen was
What you've probably seen was vanilla Morrowind placeholder models. Those are going to be eventually replaced by higher quality things.

Everything is being remodeled
Everything is being remodeled individually, we're just not done - why don't people understand that?