So their backstory is also pretty much copy/pasted from Tolkein? Elves who got caught up with the wrong demigod, and became twisted and corrupt. I have no idea why worshiping an ugly god would result in yourself turning ugly though... that sounds pretty nonsensical. I'm betting they weren't described as 'ugly' because their god became corrupt, but because they are called 'Orcs', and we all know Orcs are ugly, right kids?!
Either you are evading the issue, or you didn't read what I wrote. I'll try to make it more simple for you.
The orsimer used to be aldmer (think altmer). These aldmer worshiped the hero god, Trinimac, above all other gods in the merish pantheon. When the Chimer, lead by the prophet Veloth, were going to go on their exodus, Trinimac tried to stop them along with his loyal aldmer. Boethia ate Trinimac and used his voice to speak blasphemous and demoralizing things to the aldmer loyal to Trinimac. After crumbling the aldmer's entire world, Boethia pooped out Trinimac, but Trinimac warped into the being now known as Malacath. With this, those aldmer also underwent a transformation, and became the orsimer.
These were not elves who were captured, tortured, mutilated, and corrupt by a malevolent being to make his own army and to give the middle finger to the elves. The orsimer, pretty much, were at the wrong place at the wrong time. Here's a book that pretty much sums up what I said http://www.uesp.net/wiki/Oblivion:The_True_Nature_of_Orcs. In other words, they're poop nuggets to the giant turd Malacath.
I have a lot of respect for the TES world and races, but the Orcs and Nords, and partially the Bosmer, still need to be fleshed out and given something unique before I can respect them. At the moment they are just stolen from generic fantasy (Orcs), real-world ancient mythology (Nords), or are used as a joke race (Bosmer).
A lot of races need more fleshing out, but you can make do if you read the lore and back history. There's plenty of enough material for you to read through, though the Imperial Library needs to be restored soon..
looking elven doesn't mean pretty, I WANT Orsimer to be ugly. But they should basiclly look like green Dwemer (BASED OF THAT CONCEPT ART PICTURE) without the beards, plus tusks, and in more fitting clothes. Yes make them samrt (but a low inteligence attribute gameplay wise.) in terms of what traitional Orcish clothing looks like, take http://www.comicbookmovie.com/images/users/uploads/12980/piccolo_2%5B1%5D.jpeg for wardrobe inpiration, but not for what they should look like.
Then what you want is a wardrobe change, not some makeup and lip gloss. http://www.imperial-library.info/races/mw_orc.gif