Arena and Daggerfall (the two predecessor games) were procedurally generated, and just felt "more of the same" after a while. My understanding is that the world in Morrowind was lovingly crafted by hand. This might have resulted in a small in-game world—but each inch of that world felt special.
Interestingly, the Witcher 3 is probably the one other game that gave me the same "this world is handcrafted" feel (dunno how that was built though).
The illusion starts to fade when you wander further away from the school, but the game smartly keeps most of its critical path around Hogwarts and Hogsmeade.
Ever play Riven? I remember reading that "every pixel was crafted by hand" (which probably wasn't quite true, but, probably not enough to matter. That game was a work of art)
(Dungeon Keeper -> Dungeons 2; more than a straight remake)
(Master of Magic; dec last year; nearly an exact remake - switch to hex grid, few other tweaks, maybe more down the road :hopes:)
(Pharaoh, A New Era - tomorrow, possibly an exact remake?)
I cannot damn wait until the Banjo-Kazooie decompilation project is complete and someone starts working on a Render96-esque version of it.