Seems like propaganda to me.

Ulfric wants to be high king and tells all the young men and women that if they want to be a 'true Nord' then they'll fight for the Stormcloaks.

Is that what a true Nord is?

Does being a true Nord mean that you follow the old ways?

What are the old ways, worshipping dragons?

DEATH. OR SOVNGARDE!!

It is propoganda.

It's a blatant attempt to muster forces by preying on the Nordic patriotism for Skyrim. The argument is that no "true" nord would EVER turn on their homeland in favor of an outside power, even one that had (for the most part) been historically fair to their homeland.

A true Nord should be accepting of everyone (in my opinion).

It means you lack the capacity to validate your position with facts, tactics, and strategy, and instead resort to peer pressure to win people over to your side.

(Not saying that as a shot at only the Stormcloaks. I roll my eyes whenever anyone says "only a true Nord does x," regardless of the color of his uniform.)

Or it means you're racist

ahahahah THIS

Also, what about the racism against elves?

If you want to be a true Nord then you have to hate ALL elves for something that happened in ancient times by a certain, now extinct race of elves.

Nope. As mentioned earlier, the term is essentially propaganda used by both sides to attempt to drum up support from the local Nord populace of Skyrim. There is no absolute definition.

As long as you are not a milkdrinker, then you are a true Nord

Drunk and disorderly?

I agree with this. The way the lines are said in the game (especially by Rolff Stone-Fist) is reminiscent of language used by nationalists and neo-nazis in our world. To me, the phrase 'true nord' hints at the idea of (nord) 'purity' and implicitly suggests that non-nords are inferior because they are supposedly incapable of understanding good ol' Nordic notions of honor. It's dangerous and divisive language that has broad appeal to many disenfranchised people, and there happen to be many such people in Skyrim.