This has always given me a guilt trip during character creation in Morrowind and Skyrim. Don't the stories, and the lore behind those stories, work much better if you play a Dunmer in Morrowind and a Nord in Skyrim? I suppose in Skyrim an Imperial or Breton is close enough as well. It feels really weird for anyone but a Dunmer to to be the Nerevarine though, and for a beast race to be Dragonborn.
In Oblivion it doesn't really matter, anyone can be the Emperor's champion, and in Daggerfall the same, a random member of the Blades. In Morrowind and Skyrim though it seems there is a real "lore correct" race to pick.
Whenever I make a new character in Morrowind and Skyrim I always feel like I need to pick the appropriate race. Anyone else agree?