You know something that annoyed me, regardless of whether it was Morrowind or the later Beth games was how display items were always such a low level.
I would have liked if every shop had an item or 3 in display cases with high level locks or some sort of trap on them that you could only get at later levels...or if you were truly able to get into the shop in the middle of the night, get past the guard, AND were able to get the item out of the display case, then yeah, you deserve that.
Plus, sucks walking into a nice Imperial shop full of iron and leather gear. Show me some shinies.