From my experience by maxing out at level 1 you retain level 1 adversaries throughout the game. I find it frustrating & somewhat boring. Try it at a much later level & I fail to see the point. Apart from the outrageous health etc of course...
Wrong game. Morrowind Enemies are Unleveled, unlike Oblivion or Skyrim. You can go into any random dungeon in Morrowind, and run into utterly insane baddies from the moment you start up the game. Even the dungeon in Seyda Neen is rather dangerous for a level 1 fresh off the boat, but go in there at level 50, and you'll mow through it like you own the place(Or really, just buy a weapon or spell for that one, they purposely put two low-level dungeons in the Sedya Neen area for low levels).
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Try it at a much later level & I fail to see the point. Apart from the outrageous health etc of course...