I thought the coloring of all the races was terrible in Oblivion, it was very unrealistic, SR npc look so much better partly because of a much more realistic color palette.
I do agree that the way it was done made them lok very weird and pasty, but I still liked the red-tinged skin as an idea, if not an implementation.
It's a visual comparison. There's no other way to describe it unless you lie.
I think he's reffering to how you said, in my response to saying that he didn't look African (ignoring the fact that they were refering to different images), that they wouldn't all look the same.