It's just a general war cry- sheesh, people are so sssensitive. Anyway it's not racist for the Nords to believe that they should be the ones running the country. They consider it their homeland, they've held it for ages, and have fought off those who've tried to take or retake their territory- which is no doubt where the war cry comes from. If you can't handle even that much brashness, TES isn't the game for you.
lol, http://www.uesp.net/wiki/Lore:House_Dres
You don't even have to go back to Morrowind- the lady from that opening cutscene works on the docks and has some choice words to say about the "lizards" who work there. Scouts-Many-Marshes says that the Dunmer, Nords and Argonians all hate one another.