Tying carry weight to your strength stat is just wild. Oh you’re a caster? Good luck carrying that ebony cuirass out of here.

Then again, it is morrowind, so you can just cast Feather on yourself to carry more stuff OR even cast Burden on the enemy and suddenly they are overencumberd. Or drink strength potions. Or just fly. Or make a stupid amount of money in various ways, making loot kind of neglectable.