Is the game any better in general or is it also dependant on being modded the fuck out of before being decent? I've heard a lot about morrowind but you can never be sure with nostalgia being a huge factor.
I can only say that to me nostalgia is not a factor at all. I didn't play Morrowind before some years ago when it should've been very outdated. And it was still one of the best RPGs I have ever played. Still is. Definitely in top three in regards to lore, freedom, atmosphere, story and setting. I've taken it up many times since, once a year or so.
In the beginning I tried all the different graphics mods to bring it more up to date but quickly realized that Morrowind is best kept vanilla (and I will emphasize this, nothing beats the atmosphere of the old-school RPG visual design), but with 1024x768 resolution and pushing the wall of fog (not too much, the fog is part of the natural environment and atmosphere of the game setting) enough and add distant landscapes so you get a better view of the simply awesome volcanic island (both achieved in five seconds with the MGEui tool).
Michael Kirkbride and co.'s lore is genius level in my opinion, and it's so refreshing seeing 1920's South American surrealist litterature style blend with fantasy/steam punk/sci fi.
homemade levitation item with constant effect + boots of speed + 2 seconds homemade dispel = perma flying