The team is attempting to recreate a version of Morrowind's custom spell system too. As in Morrowind, Skywind will let you kill essential characters (unlike Skyrim). Skywind will include Skyrim's quest markers and fast travel, for example, but the team hopes to make those options configurable. Building Morrowind inside Skyrim has involved some compromises, however, and the Skywind team breaks down which systems will be recreated on its website (opens in new tab). It's been in the works for nine years at this point and isn't playable yet, but the team has been posting some actual gameplay demonstrations since the summer of 2020, the latest of which you can see up above.
Morrowind definitely has a weirder and darker fantasy vibe compared with the later Oblivion and Skyrim, so it's pretty darn neat to see it in a newer engine. Like Skyblivion, it's a huge undertaking the involves rebuilding an entire game world as a Skyrim mod. As the name gives away, this one is designed to recreate Morrowind inside of Skyrim's engine.
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Skywind is another mod underneath The Elder Scrolls Renewal Project umbrella. In the meantime, you can watch for more updates on the project leader's YouTube channel (opens in new tab). Things certainly seem to be moving along, though there's still no indication of a final release date yet. They've also done a few gameplay livestreams since.
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The Skyblivion team released another development update in August 2021 to show off more environments and progress. That's probably not a common request, even though some of us foolishly like it. I wouldn't hold your breath for Oblivion's conversation minigame either. As for which Oblivion systems are making the jump to Skyblivion, the team says it's working on underwater combat but recreating Oblivion's lockpicking isn't a high priority. Work on Skyblivion started not long after Skyrim itself launched, so this one has been in development for quite a while. Not just that, but the world space that the team is building is actually bigger than Skyrim's. This mod is rebuilding all of Cyrodiil, along with its quests and creatures. As part of The Elder Scrolls Renewal Project, the Skyblivion team is attempting to recreate The Elder Scrolls IV: Oblivion as a massive mod for Skyrim. Skyblivion is likely the best known of the ambitious Elder Scrolls mods in the works right now.