So, let me get this straigth, Ocato being an Altmer makes the Imperials not racist? Doesn't the various stewards, courtmages and Housecarls helping the Jarls of Skyrim, who are made up of many different races, including Altmer, Bosmer, Bretons, Argonians(the Stormcloak Jarl that takes over in Morthal), Imperials and Redguards in addition to the native Nords make the Nords not particularly racist?

The bottom line is that the Cyrodiils are no less racist than anyone else. When a Cyrodiilic Empire rises(because of various external events thus far), their culture becomes the central one and this is pushed on the other races in Tamriel. This is partially done through the military occupation of the different lands, them taking control over the government to a larger or lesser extent(no matter what, the highest government authority is a vassal of the Emperor) and the favoritism of their own trading companies, like the East Empire Company, who gets monopoly on most major exports. Taking over and exploiting other nations is imperialism, which is inherently ethnocentric.

worship of talos is STRICTLY forbidden i smell heresy!