At the risk of sounding like an ass, the combat works on the exact same principle.
"I can't hit anything in melee combat."
Did you learn how to do melee combat?
"No."
A D&D wizard isn't going to split someone head to asshole with a greatsword, and a Nerevarine with 20 AGI and 15 Long Blade isn't going to either. But one who is statted appropriately (and managing his stamina appropriately!) sure will, with ease. Once you're past level 5 or so missing in melee becomes a thing of the past, for the most part, so long as you're actually investing in your melee skills.
Gaenor is an outlier and is not being included in this generalization for reasons that should be obvious to anyone who was about to whip him out as a counterexample.
Morrowind's game systems and especially it's combat system is very tabletop inspired. You roll to hit, and if your bonuses to hit are good, then you will. Otherwise, you roll to hit, and sometimes, you don't hit.