Really, no offense, but I think you're reading a bit too much into one little thing he said. Surely there will be quests that have you make decisions (like taking a side) that affect what you can and can't do. I think his point was that you don't have to be a racist and choose to "like" the Nords or the Elves, and that the whole racism issue is mainly part of the stage and cultural interactions of Skyrim.
No offense taken - I fully admit that I could be totally misinterpreting what Todd's saying.
and there is, err, you know, err, the racism you saw in Morrowind, you know, Cyrodiil gets less of it, because it's kind of melting pot of the races, and where it is, you know, Skyrim, you are getting back to, this is the, this is the province of the Nords, and even if the other races make appearances, umm, they don't like elves, you know, they are the original home of man, and they think, umm, men vs our elves, the mer, men are, are the ones who should rule Tamriel, not, not elves, so there is this, ahh, conflict between that, umm,
so soon that does come into the play, some of that leads in the quests, and there is the theme for the quests, but a lot of it, hmm, depending on the race you pick, it's, err, it's flavor more than it is locking you off from one thing or another.
I take the part where he says "depending on the race you pick" to mean that basically,
a lot of it [the race conflict related quests] is flavor more than it is locking you off from one thing or another,
depending on the race you pick.
In other words, as long as you picked a race that works for the particular quest, then completion of most of these race related quests will not lock you off from one thing or another (i.e., will not lock you out of future interaction or future quests with one of these race-related factions or the other).
I don't think we will be able to play an elven race character and side with the racist Nord faction that hate elves in these particular quests. It would seem to go against common sense to be able to do that.
What (I think) Todd's saying is that if you roll an Argonian or Imperial, for example, and then when you encounter these race related quests with conflict between the racist Nord faction and some Elven anti-racist faction, and if you side with the Elves then you probably won't be "locked off from" future quests or interaction with the racist Nord faction.