So, in SammiiDoogles hands on thread from eurogamer expo he say's he played a Nord and was underwater for a long time and never had to resurface for air. There wasnt even a breath meter. He mentioned that apparently Argonians don't have that racial trait anymore since everyone seems to be able to breath underwater.
WTF?! Bethesda what are you doing there?!
Can someone ask Pete what's with that or something?
EDIT: Link to Sammi's thread. http://www.gamesas.com/index.php?/topic/1233240-my-hands-on-impressions-of-skyrim-eurogamer-2011/