At this point I really don't know what you want anymore.
You keep asking me to show you how they do it, I did, and you just keep saying that doesn't count, and for me to show you.
Like, what do you want specifically? Because I am honestly confused.
How do I show a book in action? its a book, you just find it in the game world and read it.
While I see this as a cheap way to dodge the point (something you so eagerly point out with others), I am somewhat glad that this debate/discussion draws to a close. I want to see an example of where Skyrim (that counts DLCs) shows a meta point into the plot in a manner that doesn't occur in Morrowind (aka not books because... yeah that's really an obvious and unoriginal way)... I mean, it would be really dumb if the Dragonborn DLC also mentioned the meta-point from a person's mouth...
"And so the First Dragonborn meets the Last Dragonborn at the summit of Apocrypha. No doubt just as Hermaeus Mora intended. He is a fickle master, you know. But now I will be free of him. My time in Apocrypha is over. You are here in your full power, and thus subject to my full power. You will die. And with the power of your soul, I will return to Solstheim and be master of my own fate once again. Kruziikrel! Relonikiv! Now!"
Also, as a side note (this is not an argument, merely my thoughts and views on the subject)...
1. While it's true that the Telvanni are extremely typical hermit mages, they're unique because of their conflict with the mages guild (and whether magic should be open to all, or limited to a few) and their political/territorial control (because hermit mages usually control cities and towns, while partaking from a distance in the politics of Morrowind). Let's not forget that they have extremely cutthroat inter politics were stealing and murder is allowed (to a point).
2. Yeah, Redoran are basically a bunch of paladins BUT they're xenophobic and led by a corrupt dick. Also, they live in the husks of giant crabs. I will be honest, they're the worst House but they do have their points.
3. House Hlaalu... ah yes, my favorite house. On first glance they're the average merchant guild that's diverse and supportive of the Imperials and their reign. They're also the official rulers of Vvardenfell but behind their welcoming stance to outsiders they're run by Morrowind's fiercest Klu-Klux Crime Klan. They're also rife with corruption, and only a few, sometimes strange councilors stand in their way. Basically while they appear to be a strong, healthy house in favour of the glorious empire, they're actually a rotting husk full of infighting and idealogical opposition.
Ultimately, Morrowind may have a lot of fantasy cliches but it changes them in subtle ways that make them unique and interesting. Also yeah, I agree with
@Greed. Morrowind as a game is shit, but the writing (I love the dialogue... well not the system, but it's writing) and lore is fantastic.