So, I'm just wondering if there's anything in the lore that I've missed that goes over the actual current state of Morrowind? It's 50 years since the red mountain erupted. Is Vvardenfell still inhabitable? Are the Dunmer rebuilding? And how severe/extensive is argonian occupation?
I'm just curious because I want to role-play a Dunmer who has newly come to Skyrim.
We don't really know.
It's actually been http://www.imperial-library.info/content/lymdrenn-tenvannis-journal since red year occured(4e6. Skyrim takes place 4e201). We know that in 4e43 the seas around Vvardenfell were still boiling. Most of the argonians didn't stay after the invasion. Dunmer fled to solstheim and Skyrim. Not all of morrowind was covered in ash, some places are still liveable.
I seem to recall a dunmer in skyrim mentioning he shouldn't have left Mournhold, so I'd guess it's been rebuilt by this time?(Then again, maybe he left before the sacking)