Where do you think the Dunmer are at in terms of recovering from the events of the early first era and setting up a culture?

Seems like there seems to be some indication of a somewhat recovered Morrowind. There is talk from a Dunmer of going back to Mournhold and in the beginning of the game the guy reading the list says they will take my bones back to Morrowind like their is a reason to go back there for me. As if there is a full blown culture. Of course I could easily be reading to far into things. Your thoughts?

Everything is welcome so long as it has some relation to the state of the Dunmer at the time of Skyrim's setting.

What happened in 1E?