Morrowind has never been a pale shadow of Daggerfall. It's just another take on the RPG genre, and a masterful one.
Of course, it's not a RPG sandbox like Daggerfall was and that might put off the early Elder Scrolls fans, but it's superior to its big brother on numerous accounts : story lines, lore, immersion, quests, etc.
Morrowind is a handcrafted marvel with manually placed details everywhere that make the game fascinating and fun to explore, unlike Daggerfall which was big, but repetitive due to its procedural system.
Bigger screen with a constrained form factor. If you don't need a bigger screen, you're just not the target, but that doesn't mean it's totally useless.