I was having this discussion the other day with a friend about the identity of the Imperial race. While I feel it would make sense that the Imperials have some sense of cultural and racial identity, the fact that they weren't recognised as their own race until Morrowind interested me. There's also their other name, "Cryod" with "Imperial" becoming the accepted nomenclature of course due to their Empire. However, would they still be called Imperials now that their empire encompasses at most one and a half foreign Provinces? Would they want to keep the name, a name outsiders would most likely call them by as a jape?
And from an outside perspective, would you prefer Imperials to again not 'exist' as a race and instead have a Imperial identity apply to all peoples living in Cyrodiil? Would you like the game to acknowledge the lore of Cyrodiil and split the Imperial race into their two distinct cultural variations - Nibenese and Colovian? They are supposed to be considerably different to each other culturally, and physically there are differences, too.
Just a question I thought I'd share here.
EDIT: Changed the wording for the third answer as it seemed not to allow for much leeway in hindsight.