You know there is a morroblivion mod too. It recreates morrowind for the oblivion engine. YOu just board a ship and you appear in Sayda Neen. Its pretty sweet.
http://morroblivion.com/
Its looks better than the mge, but it just the world, no missions or anything and it doesnt draw distance objects like cities or landmarks unless they have been written into the mod(which is very few). Its worth a try though, just to look around. The mod is kinda old and the author stopped working on it years ago. It could of been amazing if it was completed. Still it works fairly well and will make your jaw drop the first time you see it running.
Although I found the MGE awesome, it has a serious flaw since the gamecode for morrowind isnt multithreaded, it generally runs poorly when you increase the draw distance.
But morroblivion runs great since that version of gamebyro engine uses 3 or more cpu cores. I doubt those screenshots you showed were running more than 5-10 frames per second. However if you found a way to run that mod with super long draw distances and 60 fps, please let me know how.