The problem is the quests, not the mechanics. They have the framework for a great role playing experience, but actually providing one would be a major content outlay and they aren’t even given the time budget to finish their relatively unambitious questlines anymore.
The faction quests in Morrowind were particularly excellent, intricate and tangled together with multiple paths to achieving faction leadership. The faction quests in Oblivion were at least involved and engaging. In Skyrim? Abbreviated and
abysmally written. There is absolutely nothing about the gameplay of Morrowind that uniquely enables those better, more engrossing questlines - and there is nothing about the Skyrim equivalents that make them more accessible to a broader audience, or otherwise improved on any other metric.
We can have it both ways! At least, if Zenimax will let us.