What Derangel can't seem to understand is that the implementation of a fast travel system impacted their decisions when it came to level and quest design. There were many more quests which had you run back and forth to places just to have a quick conversation because they knew you could fast-travel between the two locations. If someone chose not to use fast travel, these quests became really lame.
I can only assume that their crappy level design is also a result of this. There is rarely any reward for exploration, so doing much of it soon gets monotonous.
And random traveling in Morrowind got monotonous as well. Hell it does in ANY open world game you act like Oblivion has an exclusive on that. As for no reward, again that is an OPINION not a fact. Since fast travel didn't work in dungeons I highly doubt it effect their design at all. As for the quests, yes maybe it did. Does that mean the entire game was designed around that one single feature? No it doesn't.