Yes, many were trying...but we all know how that works out. The traditionalists and other such individuals in places of power would have found some way to ruin it anyways by being incapable of letting go of the past. The same way the few leaders of the Argonians couldn't let go, and caused this to happen.
Cool assumption, bro.
Of course some people will object, especially seeing as it is Dunmer, but it's about the stance the majority take, or those with more power. Whatever way you look at it, the Dunmer were trying to build relations with the Argonians. The lizards, on the other hand, played along until the Red Mountain erupted. Then they invaded.
It was not expansion, obviously. The Dunmers hadn't done anything in recent past to provoke it. The Argonians, cowardly race they have proven, took advantage for revenge. And unbelievably petty revenge, at that. Defend them, but don't claim the Dunmers had it coming. They're at times ass holes, and probably backwards in many aspect of society, but they did not deserve what happened.