[QUOTE=robot flux]Some1 should do something about it, and I'm not going to be it.

[/QUOTE]
Been done: Morrowind Comes Alive. To quote from the author's readme:
"Randomly adds over 900 types of NPCs to over 300 cells to bring Morrowind to life. Uses leveled lists so that what NPC spawns where is random, and what they're wearing and carrying is random. Once spawned, the NPCs then have a 20% chance of disappearing when you leave the cell they're in, so a new NPC will appear when you come back later. This means they are on a constant 'rotation', simulating people traveling to and from towns, and going in and out of the inns, shops, guilds etc. The aim of the mod is to alleviate the 'staticness' of the Morrowind world, which is a major (and dare I say well-founded) complaint about the game.
Look for the new NPCs in the streets, in temples, taverns, shops, forts, shrines, guildhalls, camps, and even Daedric ruins. You will also encounter a number of NPCs in the wilderness, including parties of travelers, adventurers and bandits, hostile and peaceful Ashlanders, traveling merchants and parties of Ordinators and Armigers on Red Mountain. All NPCs (excepting beast races) have new heads and hair by Rhedd and Allie, Zul, Gorg, Arathrax, Hellkitty, Emma, Eternum, Astarsis, Don Salus and TheSiriusSnape (plus a few simple re-textures by myself).
Lastly, these new NPCs are all compatible with mods such as 'Give Your Orders', 'Dracandros' Voice' and 'Vampire Embrace', meaning you can recruit them without having to worry about them disappearing when you change cells, as their scripts automatically disable if they happen to enter follow mode."
It also adds many kinds of recruitable NPC companions. I started using the mod about 2 months ago, and really enjoy it.