Popping in to say that I've never been a particular fan of a) adventure games and b) pirates, so I skipped Redguard and never really cared about it at all until very recently, when my general interest in old games took over.
But before I go on, I have to mention that, for a very long time, the only TES games I played were Arena and Daggerfall. Some years ago I decided to check out Morrowind since so many people say it's the best part of the series, and while I did not have particular expectations, I was quite surprised that a lot of stuff was very different from both Arena and Daggerfall, and felt almost like a franchise reboot to me.
But when, later, I checked out the Redguard demo -- purely out of technical curiosity because I wanted to know if it could be run with nGlide, being a 3dfx demo (it turned out to be a DOS programme altogether, which runs fine in DOSBox SVN Daum and DOSBox ECE) -- things suddenly started to make much more sense. Redguard is basically laying out the foundations for Morrowind, both in design and storytelling. I would say it has excellent exposition and narrative, the developers used all the state-of-the-art tools available to them to deliver a dynamic story where every element has its place. I know there are bugs and some playing mechanics are far from perfect, but I'd say this is worth checking out, even if only the demo version (you can explore the entirety of Stros M'kai, but cannot enter buildings and hence, progress the plot). In a way, there are more similarities between Redguard and Morrowind than between Morrowind and Daggerfall.