I consider the game being in English as the translation of the local language. Still, that's one reason I loved all the Daedric Script text in Morrowind - on the banners, on the walls, all over the place! One of these days I'll learn how to read it.
As for katana - I agree. Probably something that was not well-thought out when introduced into the game.
http://www.imperial-library.info/dogate/es_weaseling.shtml:
Right, sure, like I'm totally convinced... :rolleyes:
To be fair, though, one might be able to assume that this is a case of http://tvtropes.org/pmwiki/pmwiki.php/Main/TranslationConvention, while the characters aren't really speaking English, it's rendered in English (Or whatever language the game is translated into in localized versions.) likewise, one wonders if a katana is actually called a katana, or if it's just called that in the games so players will no what it's supposed to be.
In any case, it's not any more out of place than an animal in the game being called a "wolf" or a "bear" or having monsters with names taken from real world mythology or having characters with names that sound like they come from a real world culture. The only difference is that the word or name in question comes from Japanese instead of the languages those other ones mentioned come from.
In any case, as has been said, the name "Nords" likely comes from the generic fantasy origins of the Elder Scrolls, let's face it, at the start, Bethesda wasn't exactly extremely creative with names, we have Redguards, Bretons, something-elves, about the only races in Arena that actually had original names were Khajiit and Argonians, later, we were given the proper names for elves (Dunmer, Bosmer, and things like that.) which were somewhat more creative than their western names, and the origins of "Redguard" turned out to bwe a bit more complicated than someone just combining the words "Red" and "Guard", though Nord doesn't seem to have gotten such a handwave yet.