I've looked through what sources were available in-game in Skyrim, but haven't been able to really get the details I want and was wondering if any of you had more specific information. I was wondering what the state of affairs in Morrowind was at the time of Skyrim and Dragonborn, politically and economically, mainly.

From what I gathered in The Red Year and dialogue from Captain Veleth and Councilor Morvayn of Raven Rock, House Redoran is the most powerful house due to its quick action during the Red Year and its halting of the Argonian advance. Reports are inconsistent, as far as I can tell, about the Argonian invasion itself. It seems to me in vanilla Skyrim that the invasion is portrayed as an unopposed success for the Argonians, who push north until they're satisfied, then either head back to Black Marsh or remain in the southern regions of Morrowind in occupation. Dialogue from Dragonborn builds on this and, if I remember right, changes it up and says that House Redoran was the shield of Morrowind, as it had been in the Oblivion Crisis. They stopped the Argonian advance and saved the Dunmer, as their own people put it. While I like this telling the most, as a Redoran supporter, I'm a little skeptical of it as it's coming from the mouths of Redoran only and there aren't any documents or books to support it. On a little side note, I would think that the capital of Morrowind would be moved to Blacklight, due to its northern position (far from Argonians) and the fact that Mournhold is no longer a holy city and Vvardenfell is no longer hospitable.

The government in 3E 433 was a mix between local governments and the Imperial-installed monarchy, but I somehow doubt that the king is still in place after two hundred years without the Septim Empire bearing down on them. The Grand Council appears to be the sole ruling body from my point of view, with the Temple of the New Tribunal being influential but not the powerful player that the ALMSIVI Temple was. It is possible that the Dunmer aren't too eager to throw their loyalty in with a religious entity as a political power after the Tribunal rule and the result of it in the early Fourth Era.

So are the Dunmer people scraping by, refugees and exiles living on the charity of other nations/provinces like Skyrim, or are they rising again as a united people in the way that the Redoran in Dragonborn tell it? Are they too weak to defend against external threats, or are they simply keeping their interests within Morrowind's borders as they historically prefer it? All opinions are appreciated, since I'm both pretty unclear on the subject and extremely interested in it.

I imagine that Resdayn is rebuilding but what we've learned in game isn't doing the rebirth justice.

For instance

I have a hard time believing Telvannis completely fell to the Argonians, Tel Aruhn is not the northern-most Telvanni settlement that is Port Telvannis and I imagine after the Red Year a great deal of House Telvanni refugees ended up there, that is a lot of mages and people. I find it hard to believe the Argonians managed to get all the way up to Port Telvannis and wipe out a city of ages old wizards and sorcerers who could probably summon up hordes of Daedra or even erect a city wide shield.

Redoran is also in good or rather alright condition due to the fact the Dunmer managed to unite under Redoran's banner and drive out the Argonians, further point to make is that Redoran, like Telvannis, wouldn't have been hit as soon as the other houses.