I played it, though my expeditions into its depths were usually rather brief and most likely barely grazed the surface. First of all, OMGWTFHUMONGALITIOUS WORLD! Last I heard, there are around twenty thousand locations on the map. THAT'S MORE THAN THERE IS STARS IN ELITE!!! (Speaking of which, did anyone mention Elite at all?) Not to mention you can walk between the places on foot, though the trip is likely to be a lot less interesting than it would be in Morrowind.
Then, towns. They're reasonably large, at least those I could get to. No fancy NPC AI, or AI at all for that matter. You can go around, ask stuff, kill, rob, plunder. Rape would probably be a nice addition, but isn't likely in this universe. Best thing is, you can get into a town even at night, when the gates are closed, by climbing over the walls. It's a good display of the sandbox approach to game design, but it would make a lot more sense if the climbing skill actually cared to check for whether or not the player is sitting on a horse, nevermind whether or no the said horse is pulling a WAGON with four metric tons of loot in it.
The graphics are nothing to sneeze at for their time, the items are plenty, the magic is nice (though with a ridiculous "recast" system that baffles me every time I return to the game). It has its share of major bugs, other than the aforemenioned climbing, like that you can't strafe when facing a wall, or similarly you can't really swim underwater without some major patching. All in all, it's a great game, with great scale. I'd really like to see Bethesda put some money into procedural generation (a-la, say, DF) and recreate the entirety of the continent Daggerfall is supposed to occur on, in Morrowind graphics. Now THAT would REALLY be SOMETHING.