Hm.
I took necromancy
on "animals" as traditionally acceptable based this passage from
http://www.uesp.net/wiki/Lore:Ancestors_and_the_Dunmer:
The Dark Elves would never think of practicing sorcerous necromancy upon any Dark Elf or upon the remains of any Elf. However, Dark Elves consider the human and orcish races to be little more than animals. There is no injunction against necromancy upon such remains, or on the remains of any animal, bird, or insect.
The same book also describes Telvanni practices:
The Telvanni are adept masters of necromancy. They do not, however, practice necromancy upon the remains of Dark Elves. Sane Telvanni regard such practices with loathing and righteous anger. They do practice necromancy upon the remains of animals and upon the remains of Humans, Orcs, and Argonians -- who are technically no more than animals in Morrowind.
Bear in mind that this was written shortly after the Armistice, over 3000 years after the time of the High Velothi Culture. How do we interpret this? We could say that the author just made it up, or that he met a few criminal wackos and applied his observations of them to the race as a whole, but in the absence of hard evidence to the contrary, I choose to take it at face value and accept that Dunmer really did think of mer as the only "real people" throughout their early history, and therefore, no taboo against necromancy applied to non-mer. Bottom line, my opinions on old school necromancy haven't changed at all. It's only during the Third Era that the Dunmer, "corrupted" by Imperial influence, start to see humans as real people.
I'm absolutely open to reading other sources that contradict this conclusion - I'll check them out side by side and rethink then. Nothing I've found so far contradicts this.
As for Veloth's message and the Daedra, all I found was http://uesp.net/wiki/Lore:Veloth:
Saint Veloth also taught the difference between the Good and Bad Daedra, and won the aid of the Good Daedra for his people while teaching how to carefully negotiate with the Bad Daedra.
Now, while I have no doubt that this teaching was largely responsible for the perception of the Bad Daedra as "evil", really all it says is that you need to watch out when dealing with them. This is totally consistent with the teachings in
http://uesp.net/wiki/Lore:The_House_of_Troubles, which is what I based my upthread interpretation on.
Based on that summary of Veloth's teachings (which date from earliest Dunmer history) and the House of Troubles interpretation, it looks to me like the Good and Bad are two sides of a coin, and equally worthy of respect in the earliest records, implying that the vilification of the Bad as evil beings to be fought was an evolution of the distinction imposed by the Tribunal, probably to focus more support on themselves. (We all know how powerful institutions love to have visible enemies.) Again, I would love to look over any source that says otherwise.
It's true that the Temple has been around as long as the Dunmer themselves, and therefore Temple tradition, since it was also popular, can be considered the "most traditional" viewpoint. However I am going to claim that the "cultist interpretation" predates that of the Temple and is therefore technically more conservative. (Veloth himself was apparently not a Temple supporter at all, but a proponent of ancestor-worship.) In any case, it doesn't matter whether my character is as traditional or conservative as possible; that's not the point. Whatever the exact chronology of the varying viewpoints, the "Troubles" viewpoint looks like it will be the most fun to subscribe to. Though I do enjoy the idea of blowing off the Temple teachers as a bunch of Johnny-come-latelies.
Anyway, this will mean that I still view all the Daedra as being important and praiseworthy, so my upthread conclusions have again not changed. Probably will avoid using Soul Trap on any aligned Daedra, but will be OK with Trapping Atronachs, since they are unaligned and therefore kind of second class citizens.
Hellmouth, you mentioned something about not taking so much inspiration from Indoril. I looked around some but couldn't find any relationship between Indoril, necromancy, or Daedra. Some Indoril guys worked in the Temple; that's it. So I have no idea what you meant.
If I am mixed up on any of this, please set me straight, preferably with source material. Thanks!