Indeed. An article has covered this, and quite well http://www.gamecritics.com/richard-naik/breaking-the-immersion-skyrims-racism-lacks-authenticity
I don't get it, why include races, but then not use them? The game treats you like a Nord regardless of which race you choose, so as Longknife has mentioned before, its a pseudo-choice. Not only in terms of quest choices, but even in terms of character creation.
I can kind of see why they chose to do it this way - to ensure complete freedom to play the same game irrespective of whether you're a Nord, a Dark Elf, or an Argonian. It adheres to the complete freedom that Elder Scrolls seems to embrace from beginning to end. But its a missed opportunity, since creating new questlines and bonuses/rectrictions for each race would have added a wonderful amount of replayability to the game.
What's sad is that Oblivion and Morrowind both had race recognization. Oblivion less so because the Imperials are very tolerant, but the few instances where the game called for it, it had it.
Skyrim's racism disappoints me in two ways: one, in that it doesn't manifest itself. Everyone gets the EXACT same dialog. The only exception I can think of is Orcs get free passage into orc strongholds, but that's to be expected since Orcs also got free Malacath worship in Oblivion. I honestly can't name a single other situation where the game recognizes your race. The second thing that bothers me is the stupidity of the racism. In Morrowind, the Dark Elves were racist as hell. But it was REALISTIC racism. They were xenophobic in general, holding dear their old traditions and culture in a way that's comparable to modern-day Japan. They weren't specifically resentful of any particular race, except Khajiit and Argonians (treated like livestock) and then Nords (bitterness over old feuds and wars); besides that, they just did NOT like foreigners. They weren't constantly screaming about it though, and you got the sense they just valued their own culture far more than the culture of others, thus the racism. As I said, very similar to Japan: it's not that Japan so much views themselves as superior, but they're just so caught up with their own culture that they frown upon other cultures.
Nord racism? It's DERPTASTIC. "HERP DERP I HATE ELVES.....CUZ."
Like you'll never find a single reason given for any of it. The furthest you get is "I just think Skyrim should be for the Nords." Yeah ok, WHY? Like Russia has a comparable sort of racism here. If you ask Russia, you might here "I think Russia should be for Russians." Why? "Because foreigners are stealing our jobs and/or I believe Russians are the superior race!" Ok, stupid reasons of course but hey, that's legit racism. Skyrim? No reason ever given. They just have this unexplainable desire for Skyrim to be a Nord-only land. They NEVER show you any instances of the Nords hating Dunmer culture or being robbed by a Khajiit or ANYTHING.
The Nordic racism in Skyrim is basically the equivalent of if you introduced me to a man from India, he was the first Indian I ever met and I just randomly said "Hmmm....naaaah I don't wanna be around him" with ZERO explanation given. No me believing I'm superior, no me distrusting him, no nothing: just an unexplainable desire to get away from him. It's the WEIRDEST [censored] that they've created in Skyrim.
I honestly cannot understand it. The horribad writing of Skyrim absolutely baffles me. People said Oblivion was poorly written, but on that note:
1) Yes the voice acting was bad, but to that I say use a little imagination. They had a budget and the game was still great (this excuse doesn't fly for Skyrim because wtf NV voice actors were outstanding, then Skyrim just....wasn't)
2) The main quest was passable. It wasn't award-winning, but it was good enough to serve it's purpose. Personally, that's all I ask of a main quest.
3) Thieves Guild and Shivering Isles? VERY well-written
But Skyrim's horribad writing gives me the impression their writers have never gone outside and spoken to anyone. Do they really think people announce "I WORK FOR BELETHOR AT THE GENERAL GOODS STORE" to random strangers? Do they really think racism is THAT simple? How the HELL do the Falmer make any [censored] sense?
It's just.....wow. The writing of Skyrim goes against every bit of common sense that every human being who's ever interacted with another human being should posess.