I don't think anyone in Tamriel or any of you guys really understand the Argonians and the Hist. Or maybe I am overthinking it... check this quote out from the UESP, on the Oblivion Crisis:
In http://www.uesp.net/wiki/Lore:Black_Marsh, the http://www.uesp.net/wiki/Lore:Hist called back many http://www.uesp.net/wiki/Lore:Argonian to fight off the http://www.uesp.net/wiki/Lore:Daedra. The Daedric commanders closed many gates to stop the united Argonians from entering.http://www.uesp.net/wiki/Lore:Oblivion_Crisis#cite_note-TIC-2
So pretty much the Argonians and the Hist took the fight right back to the Daedra, forcing the Daedra to actually close the gates. So while the Daedra were swarming out of the gates and kicking everyone's ass, in Black Marsh the Daedra were closing the gates because the Argonians were kicking their ass. These Argonians and Hist are pretty... pretty damn tough.
Also, although Morrowind was weakened by the Red Mountain's eruption, the Argonians stormed across southern Morrowind. I don't think the Hist and Argonians waged war elsewhere cause there is no reason to.
Anyone else feel like these Hist and Argonians are arguably the best fighting force? They have a virtually 100% defensive homeland (to many diseases only they can withstand). I feel like they'd completely annihilate the Dominion and the Empire.