dtgreene: If I were in charge of a remake of this game, there is one little change I would make that would make the game more accessible without changing the gameplay:
* Whenever the player's attack collides with an enemy, but the RNG decides that the attack misses, the enemy would perform a blocking animation of some sort, and there would be a sound that's different from the sound of a successful hit. (This would occur even when the enemy attacked is something like a rat or cliff racer, or a ghost (in which case, if your weapon is incapable of damaging it, there'd be a different sound effect).)
Also, that game (and Oblivion) suffers from having an atrocious way of handling stat growth; I would change that. (I like having skills improve by use, but the difficulty of the task really should be factored in, and the increases to basic attributes when leveling up happens is handled very poorly.)
Time4Tea: Personally, I don't find either of those things to be a big problem, or that they negatively affect my enjoyment of the game very much.
Regarding the combat, I know a lot of people dislike the dice-rolling, where it looks like you physically hit an opponent, but you don't. I guess I'm comfortable with the visuals just being an 'artists impression' of what is happening. But yes, having some sort of animation for when you 'swing and miss' might make it more accessible to newer gamers. Or even showing a log of the dice rolls, to make it clearer what is going on.
I like the way the combat works in Oblivion in some ways, although the fact that attacks always hit seems to put too much emphasis on the use of a shield. i.e. the only way you can not 'get hit' by a direct hit is to block it with a shield. My main beef with Oblivion though is the enemy level-scaling. I hate, hate, hate it! In fact, I would only play Oblivion again if I were to use a mod to change that.
About the leveling: I really like the way you improve skills through use, which makes a lot of sense. Although, it can lead to 'grinding' behavior in some cases, e.g. where you spend 15 minutes just jumping around to level up the jump skill. Yes, an improvement to the ability leveling might be nice. Something that would give the player a bit more to do on a level up.
What is your opinion of Ultima Underworld? Would you say it has aged better or worse than the regular Ultima series?
As for the whole visual issue, I think the reason that you are OK with it is that you have played the game and are used to the game behaving that way. The problem comes when new players, those who have never played Morrowind before, keep missing because of the RNG and don't understand why they're missing; a blocking animation would give the players some feedback about what's going on (and would clearly differentiate it from the case where your attack didn't collide in the first place).
I do like skills improving through use (it's why I enjoy Wasteland 1 but don't want to try 2 or 3); it's some of the other mechanics that have issues. For example:
* At high skill, it's harder to increase the skill, but performing difficult tasks does not help you increase the skill faster, so skill increases become scarce later on.
* Failures don't reward skill experience, so many low level skills are difficult to raise. (Alternative approaches are seen in Dungeon Master, where a failure gives you reduced XP, and Wizardry 8, where a failure gives you *increased* skill XP.)
* Set-ups where there's synergy between races and classes, or between primary skills and specialization, are actually penalized with a lower level cap.
* The way stats increase at level up based on which skills increased during that level is rather lousy; it would be better if stat gains were independent of skill use, or if stat gains were independent of leveling. (Wizardry 8 is an example of the former; for the latter, you can look at games like Ultima 3 or any SaGa game where stats can increase (excluding original SaGa 3).)
As for Ultima Underworld, I have to give it a NaN rating, as I have not played the game and am not familiar with how the game plays.
(By the way, if you dislike level scaling, I would advice staying away from Final Fantasy 8.)