Well, I've downloaded Arena recently (legally from the official site, so don't hurt me!), and it's much harder than Morrowind. At least for me.
I mean, I haven't even got out of the prison/dungeon that you start in yet! :ashamed:
Darn those goblins! Ambush me as soon as I get out of the water (which was difficult for me to do in the first place)! Strangely enough, in Arena, my weak Altmer Healer (Celia) is surviving much better than my much more stronger female Khajiit Ohmes (a Ranger/Archer).