Seeing the NotN in a Skyrim expansion would be extremely interesting.
Because in Oblivion, they were egg-headed idiots who clearly had no idea who Pelinal actually was and what he stood for. Obviously never read the Song, and even let an elf join.
Of course, now that the Thalmor are an existential threat in every sense of the word, it would be interesting to see the Knights return to Pelinal's elf-hating ways.
Companions also let Elves join their ranks. Nothing new there.
Unlike the Merethic Era when every Mer hated Men and every Man hater Mer, the current Era is more tolerant. The once anti-elven factions have softened up now and many Elves follow the Imperial Ideals rather than the Conservative Elven ideals (Thalmor are similar to the old ones but many Altmer now oppose it... and tend to get killed so those Anti-Elven factions are better friends than these "Real" Elves).
Pelinal himself was many thing's, but the aspect the KotN cared during the Oblivion Crisis was the Servant oft he Divines, not the Elf-hating one. Tough I guess they would have more Elf-haters aftr the Great War and all... but still not to Merethic Era standards.