Because Argonians are bosses.
I thought at the time they were Hist-zombies?
The Dunmer will rise again... maybe with some more civil views on slavery however.
Doubtful. Dunmer society is / was built on some pretty certain values, leading to the http://www.uesp.net/wiki/Lore:Dunmer of them being, "proud, ruthless, and cruel" with a "vengeful nature". The eye for an eye mentality can only serve to stir up racial tensions further and make them even
more jaded and bitter (as if that was possible). I can imagine the Dunmer will embark on a bloody - and potentially futile - crusade to reclaim the homeland when they believe they're capable of it. As Hellmouth mentioned, see low birth rate.
No, the argonians really did clear off Morrowind. Got as far north as the ruins of Vivec city. At this point, the only dunmer around are only found in Solstheim, Skyrim, and Cyrodiil. Morrowind is pretty much under the grasp of the argonians and the Hist.
I wonder how the Telvanni of the
far east are doing? Telvenni holdings stretch further to the north than Vivec, which is where you said the Argonians got to. Plus the more http://images.uesp.net//f/ff/Racemap05S-Morrowind.jpg (the island to the north-east specifically) Telvanni territories were just as / at least as far away from Red Mountain and Vivec as Solstheim. Plus the more sheltered areas, such as that island (no idea what exactly that is though) would be sheltered by other landmasses from any tsunamis or whatever kicked up from the inner sea.
They no longer have the Tribunal, though.
They didn't during the Velothi exodus either. I'm sure a certain three Daedra Princes will be more than happy to step in and fill the ecclesiastic power-void.
Also, maybe the Land
fall was their caverns collapsing on them?