No More Medium Armor by Josephort
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Generally speaking, I find the degree of specialization through little choices to be one of Morrowind's strong points. However, I think Bethesda went a step too far in breaking armor into three separate categories. I have simply never understood the logic behind the existence of medium armor, for a few reasons:

1- I see a clear distinction between light and heavy armor and the skills needed to use them. Heavy plate armor is rigid but sturdy; users must learn how to move freely and take full blows. Light armor is flexible but offers only modest protection; users must learn to dodge and deflect blows. I don't really see what the middle ground is, or why it would require its own skillset. Why should a character comfortable in wolfskin armor be helpless in slightly bulkier bearskin? Why should a character able to fight in metal plate of nordic design be incapable of fighting in slightly lighter plate of orcish design?

2- I've never understood what sort of character archetype would specialize in medium armor. I take light armor when I want to specialize in stealth or mobility, heavy armor when I want to specialize in toe-to-toe combat, and both if I want to be a generalist. I pretty much only use medium armor if I really want my character to look like an ordinator.

3- Vanilla Morrowind simply doesn't add enough armors to justify three categories. Without the addition of large armor mods, light and heavy armor both lack mid-level sets, and medium armor lacks quality endgame gear.

This mod attempts to remove (nearly) all trace that medium armor ever existed from the game. The mod is broken into five esps (see compatibility section). When all are used together, features will include:
-The medium armor category will not exist in game
-All classes and races will have medium armor removed from their specialties and replaced with either light or heavy armor
-Most NPCs who had a high medium armor skill will instead have high light or heavy armor
-All factions will have medium armor removed from their favored skills and replaced with light or heavy armor
-All former medium armor skill books will teach light or heavy armor instead
-All former medium armor sets will be assigned to either light or heavy. In sorting, I primarily focused on what made the most "sense" based on the armor's appearance and lore, but also took game balance into effect. Nordic Ringmail, Imperial Chain, Imperial Dragonscale, Bonemold, Dreugh, Bear and Ice armors and the Ebony Mail are all now light; Orcish, Indoril, Addamantium and Royal Guard armors area all now heavy.

Installation and Usage
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To install and use this mod, drop No More Medium Armor.esp and whichever of the other four modules you wish to use into your data files folder, and add them to your game. No More Medium Armor.esp must be activated for the mod to function; the other four are optional (see compatibility section).

Adding the mod to a game in progress and uninstalling the mod from a game should both be perfectly safe- just make sure to clean your save.

This mod requires Tribunal and Bloodmoon

Compatibility
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Because this mod makes minor tweaks to many different objects, it will likely conflict with many different mods. For this reason, I have broken the mod into five different esp files. This will allow you to play with most of the features of the mod while avoiding those that conflict, and make it easier to organize your leveled list and merge objects in conflicting mods if you are comfortable doing so. I'll break the compatibility issues down module-by-module for your convenience and reading pleasure.

No More Medium Armor.esp: this is the base mod, and it simply modifies a few GMSTs to remove the medium armor category from the game. It should have no conflicts unless you are using another mod that modifies the settings for armor weight classes.

No More Medium Armor- Class and Race.esp: this module ensures that neither the PC nor any NPC with auto-calculated stats has unnecessary points put in the medium armor skill. It will conflict with any mods that modify vanilla races (such as Wakim's or BTB's game improvements), as well as any mods that modify vanilla classes (none that I'm aware of). Unfortunately, TESTool cannot merge race information, so if you want to eliminate this incompatibility you will have to edit one of the mods in the CS and add the changes of the other. I would recommend simply loading my mod first, allowing the racial changes to be overwritten, and then using the console to tweak your skills if playing a race with a medium armor bonus.

No More Medium Armor- Factions.esp: this module removes medium armor as a favored skill from the Ashlanders, House Redoran, and the East Empire Company and replaces it with light or heavy armor. It will conflict with other mods that modify faction requirements (such as WGI). You could merge objects in TESTool to solve the conflict, or just leave this module out and make faction advancement slightly harder.

No More Medium Armor- Armor Weights.esp: this module tweaks the weight of a few pieces of armor so that they would be governed by the appropriate skill. It will conflict at least in part with other mods that modify armor stats (such as divine domina and most equipment/economy balance mods). Merging objects in TESTool should solve most conflicts.

No More Medium Armor- Skill Books.esp: this module changes the five medium armor skill books to teach light/heavy armor instead. It will completely conflict with other mods that modify these books (such as book rotate). Merging objects in TESTool should solve conflicts; you can also try the Book Rotate Patcher tool (though I have not tested this).

One note on Merging Objects in TESTool: I did a few quick tests merging this mod with conflicting mods that I use, and everything seemed to work. However, I am by no means an expert on this function. I know some experienced users warn against merging objects, and I know that trying to merge too many plugins at once can cause trouble (though the modular nature of this mod should make it easier to create a few small merges instead of one big one). Use at your own risk, and be careful.

Known Issues and Limitations
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While the class and race module will update the skills of all auto-calculated NPCs, some non-autocalculated NPCs may still have a high medium armor skill. You may find some NPCs who are wearing armor they are not skilled at using, or who have taken off their armor altogether. This may make some fights a bit easier. On the other hand, some NPCs who were previously given armor with which they were not competent may now be much more formidable.

Medium armor added by mods will be categorized as either light or heavy armor, but there is no guarantee that sets will not be divided between the two. (The cutoff weight is 4.2 for helmets and gauntlets, 8.4 for pauldrons, 13.3 for shields, 14 for greaves, 16.1 for boots, and 25.2 for cuirasses, in case you want to tweak an armor set).

In-game dialogue and text may still occasionally refer to medium armor as its own classification and skill.

Credits
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Thanks to:
Bethesda for the excellent game
GhanBuriGhan, Yacoby, melian and everyone else who contributed to Morrowind Scripting for Dummies, which was very helpful for figuring out which GMSTs to tweak
The entire community for keeping Morrowind alive for over a decade