If we could marry the improvements of the Skyrim engine (physics, combat, AI) with the clothing mods of Oblivion and Skyrim and the virtual environment settings - well, no-one will ever see me again. I will leave Earth and go to Morrowind.
Well the best way to look at it is that OpenMW is already leveraging off the Orge3D engine, so if its constantly upgraded (I'm sure part of the reason of choosing Orge3D was for this) and improved for latter CPU, GPU, etc then you already get this.
At Skywind we are going about the business of trying to get the best bang for buck models as we can to improve the graphics. We are exporting our work for Skyrim format, but of course we can always convert them to Morrowind, minus some of the shader enhancements of course. But as time goes on, branching OpenMW to use the naive format of Orge3D or reading extra NIF property values, means that new shaders can be used.
As part of the project things like creatures are being made with Zbrush with high detail, then made into game sized models. But as time goes on they can be exported with higher and higher detail. Same goes for all the models, such is the fanaticism of people wanting to re-create Morrowind(ish) elements.
This is the motto at the morroblivion.com website :
Welcome to Morroblivion.com, a community about mods that merge the amazing world of The Elder Scrolls III: Morrowind into more modern game engines.
There is no doubt in my mind that eventually that the more modern game engine will be OpenMW. So it marries the 10,000+ of man hours that have gone into overhauling Morrowind within the morroblivion/skywind community and the efforts with this project.
I imagine it could be just like Morrowind Graphics and Sound Overhaul driven install, but its going to target more elements that Orge3D can do.