Am I the only one who thought the slave races where all the more awesome in Morrowind because of Slavery??
It's like poverty. You can feel for someone who is poor, just like you can feel for an enslaved race. If Morrowind is ever visited again, we wont get that same feeling.
I see what you mean, but I'd rather see the races free. (And this seems to be the norm by 4E40, since Attrebus in "The Infernal City" mentions he once went on a mission to free slaves.)
From what I've seen so far, I think the races of the (former) Empire are rediscovering their roots and, in most cases, the provinces are seceding. This diversity may be healthier than pretending everyone's the same, what MK once derided as the "United Colors of Benetton" Empire. At the time, I wasn't sure I agreed with his assessment, but I understand it better now in light of "The Infernal City". Maybe Bethesda is aiming for a TES V with the various provinces competing with each other. Not necessarily a civil war, but a world of friction and intrigue. This isn't to say that all the citizens of Tamriel have to be racists.