I know it's impractical to change the game in this stage but I have a compromise I would like to present for discussion.
Let us pick our faction at character creation. I am open to options like a temp xp boost for choosing the faction of your race (or for joining underpopulated factions). I tossed out XP boost but other creative suggestions to encourage players to join a particular faction would do.
Open the world to everyone. The landscape is there - let us explore it. Even if we're not allowed in the cities, can't do quests or attacked by faction guards, please don't limit the players.
Alter the lore to account for multiracial factions. We must agree that the current lore already supports alliances that may or may not have been practical. By rewording it slightly we can make allowances for factions having different races. Players fighting for a cause rather than a race.
While quest text/context may prevent choosing a different faction than intended (I hope this isn't the case), I would like to make plea for these changes. I know many of you support the developers but take a moment and go back to when you first heard of ESO. Many would've never considered race locked factions or limited exploration before it was mentioned.
If the developers was able to do this and supported it, would you accept it?