In Morrowind thier special power was Water Breathing, but it was cast as a normal spell that anyone could get.
That Argonian racial ability had a drastically reduced cost - the spell anyone could get was far more expensive to cast.
I don't see anyplace where you need to be underwater now. I mean, I haven't been anywhere that needs you to be underwater without worrying about drowning. (I think I read there might be a place or 2, but not really Wowing or impressive, so agian not worth taking an Argonian. I got a water breathing spell now, and since we can't cast magic spells underwater this might be the only time we really need to be an Argonian.
It's true, most underwater areas are small enough or shallow enough that there's little risk of drowning. Waterbreathing is something of a convenience, but not much of a boost.
Histskin, the Argonian's new health regeneration ability, is one of the best racial abilities of the bunch. I'd say this picks up any slack.
So I got 2 questions, why does Bethesda think Lizards breathe underwater, like they were fish? Argonians are not fish.
Also what am I missing out from not playing an Argonian in Skyrim? I love them, was going to play an Argonian, but chose Altmer because it suited me more since I feel Argonians are kinda nerfed. What am I not seeing in them?
1. Lizards can't breath under water, argonians can.
2. I certainly wouldn't say that racial abilities are meaningless, but they have a small enough impact that you can really go with whatever race fits your roleplaying interests. My first character was an argonian fire mage and had I gone with altmer, dunmer, or breton, I would have gotten more benefit from their racial abilities. However I wouldn't switch races for the moon, Freezes-His-Tail-Off is great fun and has great character. I'm playing a breton at the moment but I'll likely be playing an argonian next (or maybe my forth character) and racial bonuses had nothing to do with that choice, I just like argonians.