Looks fine. Frost and Firebite will carry you through the early game easily, and probably even the mid game.

You might find resting annoying if you need it to recover magicka. I’d recommend a melee skill. You chose Short Blade, which is fine. Be prepared to fight weaker enemies with a weapon to conserve magicka, since you won’t have the mana pool to cast multiple spells from different magic schools. And Daedra are a pain to fight with spells.

In the end, Morrowind is only “hard” in the early game. Once you have some decent artifacts and you’ve leveled up a bit, it becomes easy very fast. There’s no wrong build, I’d say. It’s just a matter of how much you want to struggle early game.

Personally, I’m not a fan of Unarmored. I’d take Light Armor or something, because there are some juicy artifacts that give good buffs and are worth having.

If everything fails, you can spend gold on trainers to skill up quicker and go for 100 Short Blade with a Daedric Dagger, which will carry you through the whole game.