I mean, in real life, human beings have been discriminated against based on skin pigment and slight facial features differences. In TES, there are beastmen, cat people, lizard people, etc. In Oblivion, there seems to be no discrimination whatsoever against Argonians or Khajits. It doesn't seem to be very realistic or make much sense. You'd think imperials and such would be freaked out and disgusted by being around such creatures, like, for example, humans in the Warhammer 40k universe are disgusted by aliens, and shoot them on sight, instead of attempting to co-exist with them.
What do you think?