Wood elves - High elves - orcs
The orcs get forced out of highrock by the reguards and bretons, They relocate to valenwood and set up orc strongholds there, Also now every race of this faction is an elf, Orcs are elves in tes lore.
Redguards - bretons - Nords
All these races have no issues towards eachother in the past or future (skyrim) So this faction makes sense for these races. Also now every race of this faction is human. (Faction identity is good imo) I dont want to fight online from a distance and cant tell if its a nord up ahead or a breton, Having all humans and elves on each side gives each faction a stable identity and you instantly know who they are in the chaos on the battlefield.
Dunmer - Argonians - khajit
With morrowind in good shape and the Tribunal gods at the height of their strength, They have the power to force their slaves/unwilling allies into a truce. No matter how inhospitible black marsh is to invasions they would not be able to fend off the 3 dunmer gods.
Let me know what you guys think or if you have any ideas on how they could of made the factions more lore friendly.