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Well, the cell shaded style that the both Borderlands games use ain't bad. Borderlands looks nice in my opinion. It doesn't hurt or so. But what really counts in the first place is the gameplay. And Borderlands does have quite a good gameplay.
Yeah, i agree with Morrowind. When i began with the elder scrolls my first game was Oblivion. Later i got into Morrowind and liked it more. Bethesda probably never gonna produce such a game again. Skyrim is also a letdown. Morrowind has that unique feel. Whenever i walk into the West Gash or the blight storms in Molag Amur or even through the cantons of Vivec and not to mention the ice storms at Solstheim it does have a certain feeling. You're really soaked into it. Combined then with the pleasant sounds done by Jeremy Soule (like the road most travelled or nerevar rising) it makes the game immersive. I always return to Vvardenfell after a while. Currently playing it again, now busy with the telvanni stronghold tel uvirith.

From a purely visual side, by now there seems to be possible quite a lot. See this article in RPS: A korean online game named black desert has the nicest character creator I have ever seen (which does not necessarily say much...)

How much this translates into actual benefit for the game... well, we could try. But as in my Morrowind example, it is not the raw graphics power which evokes feelings and makes the game memorable; rather it is what you do with your technology. It takes real artists to get from here to there...

PS: Considering all the possibilities, still I believe most characters created will be near-clones of a few patterns (after popular movies or so).