You're right that lore has nothing to do with whether or not the player character sleeps at night, but it has everything to do with how your character might perceive certain events, the knowledge he or she should have just based on the fact that he or she was born and raised in Tamriel. (Why exactly can I go around asking idiotic questions in Skyrim like "Who is Mara?" or "Who is Azura?" Could my character be so dense as to not know who the major deities of their universe are, even on a name-basis? I understand wanting to give the information to new players, but surely there's a more appropriate way, such as "What can you tell me about Mara?" etc. But I digress.)
Understanding lore for the sake of roleplaying is the difference between having an Argonian named Bob the Lizard who acts like an Imperial and an Argonian named Kajeei-Zel who feels the Hist. Both might go around making their characters eat and sleep all day, but I'd be willing to bet that one of them is far more immersed in their character and in the world of Tamriel than the other.
Understanding lore for the sake of roleplaying is the difference between having an Argonian named Bob the Lizard who acts like an Imperial and an Argonian named Kajeei-Zel who feels the Hist. Both might go around making their characters eat and sleep all day, but I'd be willing to bet that one of them is far more immersed in their character and in the world of Tamriel than the other.
Agreed.
Coincidentally, that's exactly the type of roleplaying we weren't asked about. Though I would say that "playing make believe at realism" isn't roleplaying.