The problem with fast travel isn't so much that it exists, it's that it's existence changes the way the game is designed. Because fast travel exists, developers are not inclined to put in alternatives that are more immersive, your choice becomes "Spend ages walking everywhere" or "magical teleportation". It does seem like this is addressed in Skyrim with the carriages, but how much that will do we don't know yet. This is my same argument for the stupid compass that's in all of these games now. People say "Just don't use it", but the game developers expect you to use it, so they don't make NPC's give adequate directions to find things without it. Your choice becomes "use it or search randomly for hours with no clue where to even start".
I agree with you about Morrowind by the way, gameplay-wise Oblivion had a lot of improvements to the way the combat worked and so forth. But I'm a story guy, the fact that Morrowind's atmorsphere and story were miles ahead made it by far the better game for me. Coupled with the additional character choices that are being slowly phased out. Make no mistake, Skyrim has less skills than Oblivion, which had less skills than Morrowind, which had less skills than Daggerfall. To some people this is not a big deal, and if TES games were linear stories like The Witcher I wouldn't care, but TES are sandbox RPG's and in that type of game we should be striving for MORE character choice, not less. Removal of spell effects, combining of armor pieces, removal of skills and weapon types, all of these result in less character choice. I can only see this as a negative. I know some will disagree with me and that's fine, I'm happy for them if they like the game. One of the things I loved about Morrowind was how many different types of characters I could dream up and play with. That feeling is getting less and less as the series goes on and I don't like it.