I had the same problem and I solved it by making the game more challenging.
First of all: play the game with the highest difficulty.
Then you could try mods like More Morrowind II.
Describtion:
"It extends your character's playable lifespan in Vvardenfell by either 2x, 3x, or 4x. That means the time you spent before getting to level 30 will take considerably longer depending on which ESP you choose. It makes it so skills progress much slower than they used to. I made this mod after spending less than 30 hours in-game and reaching 25th level, which I thought was way too fast. Anyone who reaches 50th or higher with one of these mods installed (and without cheating) really knows Morrowind well.
Chances are you'll find yourself celebrating now when you level up, as it'll happen a lot less often. You'll have much more time to simply wander and play the game without worrying about it ending anytime soon, and you shouldn't have to worry about being too powerful (and you may find you have more coin for your level now). Slower leveling will also give you more time to adjust the difficulty setting in Morrowind to your liking.
You loose none of the content that Morrowind provides by using this Mod. It simply tries to give you more game to play, more time to wander and adventure before your character "grows up". Details on all of the modifications it makes can be found below.
This mod changes skill auto-train rates, paid training costs, and attempts to balance out skills across the board using initial data identical to Wakim's Game Improvements v9, which is then modified to extend gameplay."
That mod's really great. I'm using the 2x esp and and it's really hard to level up. I made the first Blade, Fighters Guild and Thieves Guild Quests until I reached level 3 or 4.
The next mod you should try out is "Blood and Gore". Yes, it adds gore to the game. But it also adds fire-, frost-, and shock-effects to victims who suffer from these kind of damages. AND fire hurts now...or at least causes fire-damage. ( I'm not sure if this is part of the "Blood and Gore" mod, but I guess it is...if not..."Fire Hurts" should be the name)
Rouges 1.51 ( or another, maybe newer version) is also a mod I can't play without anymore. I really love to be attacked by these rouge vampires in vivec during nighttime...makes you stay in an inn at night...
Then I'd play around with various armor/weapon balancing mods. There are many, many, many of them...
Some other good mods are "NightTimeDoorLocks" ( or something like that...), "DodgeMod", anything which makes being a thiefe harder...
Alright, enough mods. Let's come to the next level of hardcore-gaming
Only take what you really need. Hey, really, how realistic is it if someone enters a house and takes the whole furniture in order to sell it for a couple of coins? Alright, that's what I did or didn't do at the beginning of the game...now...with my level 7 character...I'm really in the need of money. The 'More Morrowind II' mod raises the prices for training. Believe me, you really need much money, which means, that the first time in Morrowind money is something important... ( 100 coins for finishing a quest? YIPIIIE!!! I'M RICH!!!)
I hope that could help you - it helped me
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"Some people say that I must be a terrible person, but it’s not true. I have the heart of a young boy in a jar on my desk."
-Stephen King