I haven't played Daggerfall, but I'm considering it. I'm not a huge fan of the first person perspective with such dated graphics just because depth perception gets really weird, but I might try it out.
Morrowind on the other hand I have played. Apparently it's a dumbed down version of Daggerfall. It's a pretty fun game, and the landscape is incredibly diverse unlike Oblivion and Fallout 3. There is a large number of towns and plenty of things scattered across the world that are easy to miss in a single playthrough. The size of the map is also considerably larger than Oblivion or Fallout 3 and is an island so it doesn't have to rely on conveniently placed mountain ranges as natural borders. There's some voice acting, mostly when you're walking by someone and they give a little greeting (which gets a bit irritating since it happens all the time) but actual conversations are text based. You pick a topic you want to ask about, and they give you a response, usually pretty lengthy and the writing isn't terrible.
In terms of gameplay it's okay. The battle system is somewhat less interesting than Oblivion since it lacks shiny graphics and some of the power attacks but I enjoy it more. It's much more RPG than Oblivion, since even if it looks like you hit someone if your skills aren't up to snuff you'll miss. Can be frustrating if you don't realize it (as my twelve year old self failed to). Much like Oblivion, your character inevitably becomes a jack of all trades and you can max pretty much everything out without cheating which sucks in my opinion.
There's a good deal of side-quests that will almost certainly distract you from the main quest (I still haven't beaten it since I'm pretty uninterested in it), and a lot of them are pretty good if I recall correctly. The main story is okay, but I wasn't particularly gripped by it.
One good thing is there are no leveled mobs in game. I kind of like how bandits aren't decked out in glass armor and crap when you level enough.
Also, there are more weapon and armor types than Oblivion. Axe and blunt are their own category (mace=axe wtf?) and there's a category for medium armor. Also there's a short blade and long blade skill, and I think some of the others are split up as well. I prefer this.
Overall, I enjoyed it. Pretty solid game. I've heard that Morrowind was dumbed down from Daggerfall though. I'm kind of seeing a trend here...