It's smaller but I would not say it was dumbed down like Oblivion was to Morrowind. Morrowind feels more or less the same as Arena or Daggerfall, except in how character progressiom works and that you didn't have to swing your mouse around trying to hit things with your weapon.

It literally still has all the deeper mechanics like performing rituals during certain times of the day/months/year and what not. Just not a procedurally generated world with RNG quests or dungeons. And thank God for that because Daggerfall and Arena both could literally break by generating a dungeon you couldn't actually finish.