It is propaganda, yes, but that does not mean it's completely untrue. YR would have exploded in rage if it was made up, but he is oddly silent for the page about the Dominion.
Does that mean that YR agrees with the scribes assertion that Altmer are "decadent and self-obsessed"? Or that they "feel no real tenderness for one another and have no concept of compassion"? He just nodded and smiled at how amazingly accurate the author was in describing how he himself pictures his own people?
It could be that the assertions were so ridiculous as to not even bother writing notes about it. Or it could be some of it was false information fed to the human ambassadors by the Altmer for other reasons. If the elves do breed slower than the humans, that would put the elves at a distinct disadvantage. Putting out the idea that Altmer breed just as quickly as humans but choose to kill most of their babies could have just been deliberate misinformation, that YR just chose not to comment on.
This is literally the only source that says that Altmer choose to kill most of their own babies. Just for my part, I will take it with a huge grain of salt until there is another confirmed source of this idea, or it's mentioned in-game.
Back to the original discussion, I guess I am the only one who believes it really doesn't matter which side of the war wins. Bethesda has to make it so that future games won't be tied into whichever side is triumphant, so most likely the only thing that is important is the fact the war did end eventually.
It's also possible, or maybe likely, that Skyrim may have some future crisis that effectively makes the end of the war inconsequential. Same way that Morrowind had the Red Year, and Cyrodiil had the Great War. Besthesda seems to want to make us genuinely care for the provinces they create, just so they can stomp on our hearts when they screw around with them.
So OP, don't feel bad about Ulfric Stormcloak's allegiances. Because it probably won't matter in the end, anyway. Feel better?