Some of you people need shooting.
Oblivion = better graphics
Morrowind = better story, better systems, NO LEVELLED CREATURS OR ITEMS, better quests, better role-playing, and 'bigger' world.
@various people
Levelling in Morrowind is A LOT slower than in Oblivion. This is standard levelling, not using the 'cheats' you described. Cheats are weak, whether exploiting failures in the programming/design or actual via-console style.
What is more realistic and more fun? Being able to find high-level weapons anywhere, at any time, and get pwned by people, or having scale to your level, so that
bandits get
Daedric items? That is INSANE. Daedric stuff, and ebony, has always been incredibly rare. Hell, in Morrowind, there was ONE complete set of Daedric. ONE. In Oblivion, all your enemies are weak, it's just that the time it takes to kill them is longer. There is no challenge, it is weak.
Next on my list is the quests. Only one you'd want to replay is the Dark Brotherhood. I'll grant you, that quest was awesome, I loved it. The Theives Guild is just silly - steal stuff, do special mission, rinse, repeat...all the while being Robin Hood, and then being an
honourable thief at the end? Sure, somewhat original...but still kind of silly. The Main Quest was a joke. Have you ever heard the term errand boy? Yeah, that's what you are. Fighter's guild was interesting once, but once you know the plot...no replayability. Mages guild was okay, but still only a twicer, save for the occasional replay for the lolz.
Compare with Morrowind, where you have 3 great houses, plus the thieves, assassins, mages and fighers guilds, the three vampire clans, and a main quest that is decent.
Plus, Oblivion has FAR too much hand-holding. I know, a lot of people didn't like the find-your-own-way stuff in Morrowind, but it was a lot more sensible, and made things more fun. And Morrowind DID have fast-travel - you just had to pay for it, and only went to certain places. Fast travel is stupid, it destroys all challenge, and it also makes the game a lot shorter.
Combat, I'll admit, is superior in Oblivion, but that doesn't help when you spend ten minutes trying to kill a mountain lion due to levelling. The graphics of magic are better, but magic itself is a lot worse. Missing quite a few spells, useful and cool ones at that, and it's also a lot weaker. While being able to cast magic whenever is cool, it actually worked better for role-play in Morrowind, where using magic required you to "ready" and not being attacked...I mean, really, magic probably needs you to be not getting stabbed.
DISCLAIMER
I know this sounds hugely critical, and some of it is slightly exaggerated in places. I still LIKE OBLIVION. It's a GOOD GAME. It's just not as good as Morrowind. Be warned, not much compares favourably to Morrowind for me - so this is actually a positive review in places. With mods that remove levelling, I'd almost prefer to play Oblivion, but the quests let it down. Also, you can always not fast-travel, though I have actually yet to encounter many people who STICK to that resolution.
So. GO FORTH AND PLAY OBLIVION. It's still good. Just not compared with Morrowind, in terms of replayability, quests, and roleplaying.
/rant