If the player was "lifting" on a prisoners ship he still wouldn't be called a prisoner.....
In my game play, NPC tend to be morons, and they assume the worst. This is no exception.
Both are prisoners and that's it.... Besides... You actually get more thinking freedom...
No, in my mind set, it does not at all.
You can deny it... but the player WAS placed by the gods in the prison.... The Emperor knows alot... He already knew he was going to die in sewers and would never reach Cloud Ruler Temple.... He also saw your character in his dreams.. not just 1 dream... more... If the player was really just a prisoner who was really placed in the cell by accident (wich is almost impossible) then the Emperor would have never trusted him.... and never saw him in his dreams.... and most importantly never entrusted him the amulet of kings...
This story can't be used in Morrowind....
Oh, I can deny it. Its called mods, and they do a hell lot better when it comes to integration from Intro to Main Quest.
With that said, they could have done this crappy intro ANYWHERE else. Hell, ya can sleep in an inn and they barge in your room, Picard use his cheap pick up line, and move a fruit bowl next to the ugly paint, which reveals a secret door. And that just one example if I would to use that crappy template.