What did Chriso say about editing in three more lines?
To start, you didn't tell us how long it's been since they've had an emperor. Is this right off the Oblivion Crisis, or is this significantly later?
And how did the Imperial City become overrun by bandits? It's the biggest, best defended city. Anyone who can take it over qualifies as a military group to me, not bandits. Bandits wouldn't have the willpower, the desire, or the bravery to launch a real attack on any city, let alone the biggest and best in the region. And, excuse me if I'm getting the meaning of your last sentence wrong, but if you're wealthy, they will kill you because they don't take prisoners? You do realize that bandits are not some giant evil conspiracy machine, but are in fact usually just common ruffians interested in making some money by any means necessary? Seems to me that if you were rich, they'd try to ransom you back to friends and family.
If you're trying to make it an excuse not to have the IC playable, can't you just say something like a fire or earthquake or another natural disaster devastated it? At least that doesn't strain belief as much.
And why would some of the counts just hide away in their castles? If there's no emperor, it seems to me like there would be much more room for the counts to expand their power over their cities, considering how there would be no one left to veto their laws.
Everybody knows something's going on.
Really? They'd have to be blind not to. You make it sound like it's mysterious that there's no emperor, just the counts. Well, I'm pretty sure that everyone knows the reason there is no emperor is because the Septim dynasty, and as for there only being counts: (Emperor+Counts) -Emperor = Counts. It's pretty logical that without an emperor, in a power structure composed of emperors and counts, that there would only be counts after the loss of an emperor.
And the arch mage is up to something in Skingrad!
If this has to do with the Count of Skingrad being a Vampire...