At least it's not Skyrim again, but god damn it, Morrowind is what we really need a remaster of.
I tried to play it recently and it's just one of those games that was great at the time but has aged extremely poorly. It's not even about the graphics, more how 'clunky' everything is.
UE5 is interesting. Obviously a big change with a lot of benefits, but modding will certainly be more difficult. Bethesda will actually have to put serious effort into this – pushing a game out and letting the community fix it only works if your game is extremely easy to modify.
I also feel somewhat bad for the people who've worked tirelessly on the Skyblivion project.