Oh, I don't dispute that these things can and does happen for a Dunmer PC. My question is would Ulfric, being who he is, do these things if he had a real choice? Does it not seem out of character?
There's a big difference between Dunmer and Refugee Dunmer. The Refugee dunmer are the ones that want everything to be like morrowind, hence the issues they're having with the local populace. You'll notice this in the book "http://www.imperial-library.info/content/scourge-gray-quarter". The writer is rather bigoted, but has no issues with the dunmer in Riften even praising them for contributing. It's the windhelm ones he calls out. The Hlaalu were always the most flexible house and seem to be getting along just fine with the natives. Any outside dunmer shouldn't have much of an issue besides proving that their intent to help is genuine.
Not all dunmer come from morrowind. Even less care about the old traditions. The Windhelm refugee group are a special case. http://www.imperial-library.info/content/dunmer-skyrim is a pretty good reason why there's still so many hostilities.
Indeed, one might be surprised as to just how well we've settled into Windhelm. The district once known as the Snow Quarter is thus named no more. Now, they call it the Gray Quarter, for such is the reality of the Dunmer occupation. The district is now populated entirely by my kind, a victory not lost on its residents.
Oh, but the peaceful occupation goes even further. Thirsty? You'll find no Nord mead hall in the Gray Quarter. But the spirits flow well enough in the New Gnisis Cornerclub. Seeking a respected family? You'll find no Gray-Manes within these walls. But perhaps you'd like to pay a visit to the home of Belyn Hlaalu, descendant of one of the most noble houses in all of Morrowind. Ah, but no. You Nords don't come to the Gray Quarter, do you? You fear our streets as you fear our skin.
So now, "children of Skyrim," you have the truth of it. You may call this province home, but you can no sooner claim to own it than a cow can claim to own its master's field. You are just another breed of domestic animal, grazing stupidly while higher beings plot your slaughter.
Oh, but the peaceful occupation goes even further. Thirsty? You'll find no Nord mead hall in the Gray Quarter. But the spirits flow well enough in the New Gnisis Cornerclub. Seeking a respected family? You'll find no Gray-Manes within these walls. But perhaps you'd like to pay a visit to the home of Belyn Hlaalu, descendant of one of the most noble houses in all of Morrowind. Ah, but no. You Nords don't come to the Gray Quarter, do you? You fear our streets as you fear our skin.
So now, "children of Skyrim," you have the truth of it. You may call this province home, but you can no sooner claim to own it than a cow can claim to own its master's field. You are just another breed of domestic animal, grazing stupidly while higher beings plot your slaughter.
That does not make for good relations.