Does anyone else notice that all Argonian bandits are mages? Or that Wood elves are made up of just archers. Sure their are a few exceptions but why isn't their more diversity in the npc classes for each race? For example, why don't we see any two handed Altmer in heavy armor?

they were probably somewhat based off the race-class combos from earlier titles.. you know, back when what race you chose could actually have an impact of how viable certain classes were..

Altmer as I see them are generally kinda flimsy physically, it's usually been a stereotype associated with elves in many fantasy titles so they opt for light armor or no armor at all. Being in heavy plate and hefting a heavy 2 handed weapon is just probably not a fighting style many of them pick up on. It's probably not impossible, just rare and could also be a cultural thing too. Like in the real world there are many peoples who historically never wore bulky plated armors, in most instances it was because their people simply never invented it, or they saw no need for cumbersome armor and got by fine without it.

Then again, there is a simpler explanation, it took less programming and design time to just have these races do a certain thing. Nords being the dominant race in this game get the most diversity in their npcs as you see nord casters, archers, 2 hand and 1 hand wielders.

I don't notice this. Of course I use OBIS.