From The Pocket Guide to the Empire (3rd Edition that came with Oblivion CE)

"The rest of the Second Era was a time of great darkness and chaos throughout Tamriel, nowhere moreso than in Cyrodiil. Without a central government, Nibenay and Colovia split apart, farms fell fallow, villages were left in ruin, and the former Imperial highways became no man's land, the realm of bandit kings. The Imperial City itself became the prize for an endless series of would-be emperors, fought over for centuries until its glory was only a faded shadow of the great days when it ruled Tamriel."

So, clearly the Alliance war and the fights for the throne etcetera do fit in with the lore. The only thing really added into lore is Molag Bal trying to pull Nirn into Coldharbour.

I had completely forgotten about this book until last night when I randomly found the copy a friend gave me!

still doesn't explain or points out why we will have forced factions for the race you choose and why 2/3 of tameiel is behind a invisible barrier, biggest killer of this game

Ya, I remember this.

Some will still have a problem with it. The passage doesn't make clear WHO is fighting for the throne. It could have been all Cyrods or all mannish races. Dunmer/Altmer/Argonians have rarely showed much interest in the affairs of men.

But I do think the Aldmeri Dominion would want to take White-Gold (for its mythic significance) and usher in a new era of merish rule. My only sticking point is the Argonians. I can't see what they get out of the deal.

Hopefully, in game, we will get an explanation for why the Hist are interested in this war.