To Heimir,
Actually, there was a Dunmer Empress for 46 years (Katariah), who was succeeded by her half-Dunmer son, Cassynder Septim. Also, before that, there was an Tsaesci Potentate for quite awhile.
PS: Also, the Stormcloaks are way more racist then the Empire, as they (the Stormcloaks)...