Yes, and that Altmer is actually nice to the player.

woah. most altmer are stuckup, condesending and conceited... that's why i love them

my (only) character is an altmer, married to a nord, and i don't get any snide remarks about that. the people of skyrim seem to be very open-minded
I'm not sure if a human and an Argonian could produce offspring, but I guess most of have stumbled upon "The lusty Argonian maid"...?
don't think i've seem it, but the title is enough to tell me i shouldn't