This does not affect common items though, if I remember correctly.

Medium Armor isnt neccessary either, in fact its the worst armor skill in the game - but I enjoy using it on some characters and it fits well for Rangers in my opinion. This is important for some of the quests in this game. Still, notice that people will get suspicious if you wear stolen unique items that belong to them, and likely attack you after a while, so make sure to not gear up in a town with the items you grabbed there. Chameleon is different from Invisibility because with Chameleon you can still steal objects/open doors and interact with the world. This exploit was never fixed to my knowledge, and enables you to get seriously powerful items early in the game for free. And since nobody actually watched you stealing, you won't have any trouble. As you reload the game, the item will not be put back to its original place but in your inventory. However, instead of moving it in your inventory, open the game menu and save the game.

If you were to push it into your inventory now, you would get attacked immediately if someone saw you take their property. Pick up the item of your desire and hold it in your hand. That said, there is a really sneaky way that works without any spells. I seem to remember it being on an island (possibly associated with the main quest line or near it), and their being. I can find no info about this item online though. First of all, please notice that this severely affects game balance, so don't read further if you prefer to play the game as it was intended to. This is a long shot, but once in Morrowind I found a ring with either 70 or 90 Chameleon, constant effect, and maybe a secondary effect.

Morrowind chameleon vs invisibility