Tell that to a white belt fighting a black belt....
First off, look at how strong and fit your average black belt is. You don't become a black belt by being a frail-boned, noodle-armed pansy.
Second, you average bloated-ego blackbelt carrying a weapon is not going to stand a chance against a Leviathan carrying an equal weapon, no matter how many jackie chan movies tell you otherwise.
Person A has 50 blunt strength but is very weak
Person B has a blunt strength of 50 also, but he is almost super-humanly strong
Who is going to strike harder with their weapon?
Yes it should. You know why? Because in Oblivion/Morrowind the Elf and the Orc both could cap their Str at 100 anyway destroying any difference between the two races, and at that point the Elf with 60 would do the exact same damage than the Orc with 60.
Because the elf starts with a lower skill level in Blade than the Orc and so the elf at 60 blade means he actually put MORE effort into training his blade skill than the orc to get where he is so the extra effort he did explains why he now is has proficient in blades than the Orc.
I agree. I've been in favor of race multipliers from the start, so an orc would always be stronger than a wood elf even if both were at 100 strength. That would eliminate this issue.