hmm... i thought the more dexterous the cat, the better need for claws, the more powerful the cat, the lesser need for claws, speaking evolutionary.
If the cat is powerful, then its a good runner, can out run its prey and tackle it using muscle and its teeth as the weapon.
If the cat is dexterous, then its agility and quick reflex's compliment sharp claws as its best weapon.

To me, this Khajiit in the Skrym pic looks more like a power animal then an agile one. Sure hes probably more agile then most races besides the Woodelf, but still comes across as an animal that relies on power and has alot of stamina.

I think this Khajiit should have claws that are short, pointy but not sharp. And dont poke out to much, and dont extend out to much.
Though if i was to RP this Khajiit, I would probably choose an agility build over a power build... weird... seems more fun to be a sneaky thieving Khajiit cat burglar

Claws don't help dexterity, is an evolutionary weapon. With a humanoid body, claws become even less useful for dexterity, because it limits the range of movement in the fingers. I cant imagine a Khajiit being very good at picking locks with big claws in the way (and no, claws aren't very good lockpicks).

So we have to think from a human-shaped stand point when it comes to evolutionary traits that either stay or go away.

Edit: I do believe that they should still have thick pointy fingernails, but thats not the same thing as claws.

Edit2: So I guess in summary: Paws have Claws, but Fingers have Fingernails. Its a trade-off, but fingers have the obvious advantage over paws.

It looks like some kind of leather kilt thing to me. You could be right and I could be seeing it wrong. It looks like the same tone as his other exposed fur.

The reason I don't think that's supposed to be his fur going through the pauldrons is wouldn't that be extremely uncomfortable?