Morrowind isn’t the sort of RPG where you need to go looking for advantages. After a first ten levels or so of running from demons and flailing ineffectually with your sword, you quickly find yourself escalating in power. By level 25 or so there’s not a lot that can seriously challenge you. Still, there a number of exploits out there if you’re feeling lazy or unscrupulous.
Start with something simple: enemies without spells or ranged weapons basically have no way to handle you while you’re airborne. If monsters are giving you grief, float away to a handy ledge whilst giving them the finger. Sadly this feature was removed from later games.
Morrowind has a custom spell-making system that’s very flexible, to the extent that you can come up with some tricks that the developers never intended. In particular, you can take spells that are meant to apply beneficial effects to the player, and fling them at an enemy instead. Spells such as levitate.
This sounds like a bad idea, but, make it minimum strength spell and it’s a really slow levitate. Even if the enemy can now fly, you’ve basically reduced them to crawling speed and can take a moment to heal yourself, or dance around using ranged attacks.
You make potions with the alchemy skill. Strength of the potion depends partially on your character’s Intellect stat. You can make potions that boost intellect. I think you see where this is going?
Make intellect potion, chug it, make another while under the influence, repeat several times, until you feel your intellect is suitably boosted. Then proceed to make a bunch of potions of other useful kinds, all stupidly powerful. So you can give yourself mega-healing, or super-fast levitate, or just flog your little vials of superpower serum for buckets of cash.
Troll people into attacking you
Maybe you’ve decided to murder some NPC because you want their armour, or their squeaky voice irritates you. Or possibly you’re not a complete monster, you’re just carrying out duties for some faction that this NPC has foolishly made an enemy of.
Unfortunately if you start a fight and kill someone in public, you get a bounty on your head and guards will try to chase you down and arrest you. To avoid that sort of aggravation, you need to make the NPC attack you first, so you are now acting in self defense. The way you’re meant to handle this is either by taunting or using an enrage spell, but these require a decent investment in Speechcraft and Illusion Magic skills respectively.
So here’s the cheap way: make a crappy job of pickpocketing them. Just stroll up in full view and jam your hand in their pocket. You don’t even have to take anything. Just getting as far as the “view what they’ve got” screen registers as an offense. Irritated at such dickish behaviour, they will immediately attack. And you can quite freely fight back (just make sure they land the first hit). You still have a bounty now but, unless you pilfered a high-end magiv sword or something, it’s far less than the penalty for murder, and guards can’t even be bothered to actively chase you for it.