In all Elder Scrolls games I played, there is little humorous quotes. http://www.uesp.net/wiki/Lore:Jokes. But not all the jokes are funny book. Incidentally, I do not know what in Tamriel, people of various races do for fun and spend time. Jokes? Play? Kill? Explore? Read?

I know that there is the Arena, but I never see things happening there but quests. Beyond Arena, what people of Tamriel do to have fun?

Well, one thing is the Theatre. In Morrwind, there was a theatre in Mournhold where people went to see plays acted out. another thing is books. Kings and nobility would have jesters. And I've seen jesters often in Daggerfall. Another form of entertainment is the active throwing of rocks at scribs, ala Morrowind.

Also, in that book, no jokes are made about the Altmer. I guess they have too few flaws.