lich freak1. He is dead.
2. Last time I so him he degraded in to an Altmer, being a lich obviously did not work out for the guy
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3. He lost because his followers where talentless idiots, as I sad, and he was one as well for collecting them.
4. I's not about the ability to take over the world - every Telvani mage or Aundae vampire has it, it's about the desire to do so - why on earth would I want to rule that mess, have random idiots ask me what to do and deal with everyones problems, even if they are "undead problems"? I'd rather be a mage and study and enjoy my self with as little responsibility as posible
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Generally I think that Liches and Vampires are the two sides of one coin, leach is capable of absolute solitude and obsolete concentration - it is a state of being when nothing stands between you and your magic, almost a "spiritual experience" in a necromantic sort of way. While vampires would forever stand between the two worlds, since they need human blood to survive they will never be able to remove themselves form humanity and will always be drawn in to tis mes. The expirience of being a vampire is in a way a very carnal side of undeath. But liches and vampires are the top of the food chain - the higher undead but a "different forks" of it, they have to be able to function, survive and find their pray.
And right, back on track.
Hellmouth - yes they are unnatural abominations, but that is not about the look, "awfully looking" does not equal evil, neither is true the other way around. I never sad they should be kind a fuzzy, quite the opposite - vampires should be the curse of the land and the terrors, they should look inhuman, but that does not necessary mean "inhumanly ugly"
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Look at Whitewolfs Tzimisce clan if you want to get the idea http://en.wikipedia.org/wiki/Tzimisce they are the stuff of the nightmares, without questions, but they although have a diverse look that fits their idea of beauty
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People need to remember that inside does not equal outside, some of the worst things in live look good to begin with
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Them being just another monster that gets killed kind of makes them less terrifying - we have all manner of thous and people are not that afraid of them.
And I simply can't see the logic in the horrid-fangy-monster-with-zero-social-skills, because quite frankly they would simply be unable to survive for more than a day or two, not even one of them, as for a whole clan? As it either has to find a way to feed regularly without being to noticed or it will be dead asap. Being an animal like thing simply woun't make this posible.
Morrowind vampires can survive because they are civilized, may look somewhat scary but obveously not so scary that people can't handle it - they have contact with mortals - Telvani at last do not mind them and would talk and trade with them, and they keep slaves. Cydoiil vampires simply full others in to thinking they are normal people. So it is not as simple as making them a "monster" - vampire has to be believable and have logic behind them.