I actually made a mod with this same concept in the past since I wanted more variety of mushroom trees (total of 6-8 from what I remember). Mine used mostly medium to large size mushrooms while your mod is more varied in sizes. Overall great job.
I am using "Aesthesia Groundcover". (https://www.nexusmods.com/morrowind/mods/46377)
Also if you use other mods that affect the terrain, I strongly recommend using "Morrowind Groundcover Generator (aka Mesh Generator)" to reapply the groundcover to the ground level and "Lawnmower" (https://www.nexusmods.com/morrowind/mods/53034?tab=posts) (Python script) to remove the collisions with buildings in the cities.
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So this only hits the Ascadian Isles, correct?
Was looking between this and Mid Mushroom Overhaul, trying to decide what felt best.
As an aside, what groundcover mod are you using in your screenshots?
Also if you use other mods that affect the terrain, I strongly recommend using "Morrowind Groundcover Generator (aka Mesh Generator)" to reapply the groundcover to the ground level and "Lawnmower" (https://www.nexusmods.com/morrowind/mods/53034?tab=posts) (Python script) to remove the collisions with buildings in the cities.