The fate of Skyrim hangs in the balance, Imperial forces and Stormcloak forces are at a stalemate. Both sides are unwilling to make a move on Whiterun a strategic point for either side. However, a battle in the open plains would be devastating to both opponents. Jarl Balgruuf, remains resilient in taking no sides in the war. His resilience has paid off thus far, but both sides are getting impatient. In Windhelm, Ulfric Stormcloak is attempting to make unlikely alliances outside of the province. While in Solitude, both Jarl Elisif and General Tullius are looking to bring in an excess of Imperial Troops and new Thalmor forces.

Ulfric is still struggling to unite the Nordic people under his claim to the throne of Skyrim. Many people are divided due to the sheer size of the Imperial Army and the lack of power behind Ulfric. This is a factor that Ulfric has acknowledged. After a meeting at the Rootspire in Blacklight the Great Houses of Morrowind have met with a solution to the Dunmer struggles. The houses determined that an alliance with the Stormcloaks would help push the Argonian hordes from the Southlands to reclaim Morrowind. With Nords defending the borders to the south and west the Dark Elves could re-boot their economy through the Saltrice trade in Tear, the growing economic success in Solsthiem, and trade routes would be re-established. In return the Nords would receive military aid by any available Great House, payback of any startup costs, and future support against any Imperial threat. Normally, this offer would not appeal to Ulfric Stormcloak however the fact is that Ulfric is at a standstill in his war and if additional Imperial troops are added to the growing situation he will lose his war and his claim to the throne. With quick Dunmer reinforcements he could take Whiterun by force and gain significant ground on the Imperials.

*first and for most, would Ulfric take this deal? if he is desperate enough I feel as though he would, and in this particular Civil War scenario I think he would be desperate.

He might take the offer, though I can't see why Morrowind would give it. Even though the Dunmer are fiercely independent, they almost constantly war with, and hence dispise, Nords, whereas Imperials are a relatively new thorn in their side. Given the Imperial proficiency with trade and their weak state, Morrowind would probably remain in the Empire, and either stay out of the civil war or aid the Imperials to secure their western border from Nords too hungry for the glories of the past (which involved dominating Morrowind).

However, Dunmer are very proud. The Empire abandoned them during the Red Year, which could provoke vengeance or a lack of trust. Also the Empire would not be willing to drive the Argonians from Morrowind in fear of recreating the slave trade. Where as the Nords and the Dunmer both prosper from such a deal and they would no longer be suppressed by the Empire but rather could be independent sovereign nations.

I don't think the Argonians are afraid of being enslaved anymore though. Didn't the majority of them already leave Morrowind? I don't remember. I could see how siding with the Nords is a better idea than siding with Imperials. Dunmer despise Imperials with a passion. They hate Nords as well but I think they hate Imperials more. And since the Dunmer have sided with Nords in the past with the Ebonheart Pact. it may be a feasible option.