Skybaby here and I've played Morrowind for a couple of weeks this year for the first time. Absolutely love it. Morrowind do have fast travel imo, but it's just so well implemented that you don't think of it as fast travel.
Sure you cannot instantly travel from anywhere to anywhere, but with some magic skills you can do mark and recall. You can take boats and stilth striders to get around faster. Become a member of the mages guild and you can teleport to mages guild locations. I recently learned about divine intervention too which is cool. I haven't looked everything up, these are just the stuff I've discovered whilst playing.
I can't believe this isn't more commonly used in games. The immersion stays intact and you can move around somewhat efficiently. The only comparable experience that I can think of is the transportation systems in WoW classic, if you remove the flying.