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Except the Empire really isn't blocking anything. If the Dominion got it in their mind to invade again, they'd take Cyrodiil rather easily sure. But thats it. They wouldn't be able to touch High Rock (except by going through a long and likely expensive sea route that will tie up a significant portion of their forces for a long time) as its blocked in by Hammerfel (which I doubt the Dominion will ever try to take over again until they've taken the entirety of the Empire) and Skyrim, which the Dominion would be foolish to try and invade because its the absolute worst place they could think of invading. The only entrances to it (besides sea routes) that the Dominion could get to are covered in mountainous terrain (which is terrible to fight a war on), inhabited by folks that have a burning hatred for elves (and doubly so after the Talos worship ban) who also happen to be some of the most capable fighters on Tamriel.
And thats not even going into what reinforcements might be had from High Rock and even Hammerfel. Throw in the inevitable Valenwood rebellion and the Dominion is going to be screwed if they go to war again.
Which you can't blame him for being cold towards you as a non-Nord. He is afterall fighting against the Empire and there isn't likely going to be too many non-Nord supporters of the Stormcloaks.
And no one forces the Dunmer to live in the slums. The Dunmer have nowhere better to go after Morrowind's destruction. And besides, at least they get to stay in the city itself (beast folk have it worse, though thats always been the case for them in places like Skyrim, Morrowind, and the Summerset Isles). And even besides that, lets remember that the Dunmer were no better.
Which was pointless because they could have continued the fight while doing rebuilding the rest of the Legion. Hammerfel fought the Dominion to a standstill by itself and kept it that way for 5 years. That alone proves the Empire could have easily continued the fight and by the gods should have continued the fight. May be not in a full aggressive war, but at least in a defensive capacity. Mede was an idiot, and while sure you can try and say that he ended the war to reduce the strain on his people, thats absolute crap because Hammerfel was going to be stricken by war regardless, and nowhere else was going to be affected too drastically. Skyrim and High Rock never even saw the war.
All that needed really needed to be done was to take the rest of the Legion that was capable to fight, bolster it with fresh troops from Skyrim and High Rock, and defend Cyrodiils southern border, meanwhile sending any spare troops to Hammerfel.
The Dominion's army was absolutely destroyed at the Battle of the Red Ring. The Legion only lost about half its forces, with half of its remaining forces unable to continue soldiering. IDK about you, but I think 25% of your fighting force is more than enough to deal with the enemies scattered 5-10%, especially in a defensive mode.
One must also realize that the Dominion was never actually that big of a threat in the first place. They only reason they managed to be so devastating was because they started the war before the Legion even had a chance to know there was a possibility of war, and the southern defenses of Cyrodiil were completely bypassed. The Legion was split six different ways before it even knew it was at war. No army on Tamriel is going to fall for that trick again ever unless they're totally incompetent. Even the Legion wouldn't fall for it again in its reduced capacity.
[font="'lucida grande"][size="2"]If the Dominion was forced into a direct ground war (as they would be if Skyrim was leading the fight against the Dominion) they would lose drastically. And especially so if the Dominion tried to step food in Skyrim.
It is rather folly to base your opinion of the Empire on one general who is sworn to obey his superiors. If you want to judge the Empire, look at its Emperor and his family and what they've done. The Mede Emperors are for one, illegitimate. They stole the throne through force (Gee, I wonder who we're accusing of doing that?) and while that was nice for the Empire in the short term it ultimately proved to be devastating to the Empire as they turned out to be massively short sighted and plainly stupid. Hence, the White-Gold Concordat which unnecessarily put the Empire at the whim of their former enemy.
Monastic pacifism is all fine and dandy up on a mountain, but not so much down on earth where everyone else lives. And besides that, that isn't what happened at all. There was no "petty grab for the throne". Thats just a red herring people like to throw around so as to diminish the actual point of Ulfric killing Torryg.
No, Torryg died to show the people of Skyrim the disaster that they are in. That the High King of Skyrim was able to be slain by some insignificant Jarl's son who happened to win a few battles says a lot about the state of Skyrim and for that matter the Empire.
And you can't use the "hurr he cheated, he shouted" argument either. If you actually investigate what happened when the duel took place, and actually look past the inherent bias from both sides, you'll see that the duel wasn't this clear cut "Ulfric shouted and then stabbed the boy". No, I find that its much more likely that the two fought for a while (do notice that Torygg was already dead or dying before any of the witnesses came to be there. No one besides Ulfric can actually say exactly how that battle went, and naturally you can't trust him as a source (far too biased of course), so you have to rely on those who came to witness the end of the battle) and Ulfric, knowing that he was going to win regardless (and again, this was the entire point of this duel, to show that the High King was unworthy of his station, and by extension the Empire of its station), used the Thu'um as a flourish rather than an actual tactical move. Its akin to disarming your opponent, getting him on his knees, and then chopping off his head.
There was no murder. Torygg agreed to the duel. Ulfric defeated him. To try and soil the memory of Torygg by going on about "cheating" is just distasteful. Torygg died a good Nord's death and now persists in Sovngaarde. Let him have that.
[font="'lucida grande"][size="2"]And if you still need help realizing what this duel actually was, watch this: http://www.youtube.com/watch?v=sp1mzx5O4ao and understand the context of whats going on. The two duels serve much the same purpose.
First of all, It'd be one thing if he learned the voice from some auxillary source (( Word walls or something of that nature.)) But he said that he directly learned the voice from the greybeards and then vastly abused it. Its less about him abusing the voice, (( Which is a form of magic, No problems there.)) But rather how he abused an ancient order of pacifists for his own PERSONAL gain. Not to mention that an earnest word never comes out of ulfrics mouth, After toppling solitude uflric gives a long and fruity speech about independence and says two things that prove my point, First of all he says that he won't claim the title of high king untill the moot convenes to crown him as such, (( Despite the fact that since he's got stormcloaks garrisoned in most major cities the Jarls have little choice.)) That and he allows jarl elisif to live and retain her rank if she swears fealty to him, Now at first i thought, Oh, Yeah that works ulfric isn't such a bad guy, But i believe its either ulfric himself or galmar stone-fist who says something about how its useful for ulfric politically because it makes him look merciful to torrygs widow.
In contrast if you side with general tullius after you topple windhelm he appoints Brunwulf-Free winter to jarl, Brunwulf being noted for someone who generally cares about the plight of people and how the dark elves are confined to a slum. That and he makes a small point of doubling the pay of his soldiers and compensation to the widows of fallen imperial troops which is much more noble then the long-winded speceh that ulfric rattled off.
Not to mention that not even the imperials seem happy with the talos ban, But after the majority of the legion was slaughtered, would it really be so bad to give up the open worship of one of your MANY, MANY Gods simply to get enough time to prepare to strike back against the dominion? Several Imperial-aligned people have been shown to still revere talos, Not to mention Jarl Balgruuf has that crazy priest outside the statue of talos in whiterun, Despite the town being aligned to the empire do you ever see him reported to the justiciars? No.
And about the actual emperor... First of all both titus mede ll And the septims (( Tiber Septim excluded.)) were BORN into royalty, Same as titus mede the second i don't see how having a different family name makes your rise to power by way of a monarchy of a government any more or less legitimate. That and titus mede the second seems like a very reasonable and wise person, Just because he had a warlord for a father dosen't mean he isn't fit to be emperor.
In regards to the empire surrendering... I mean this isn't even needed, half of the legions forces suffered casulaties of some sort and the dominion had a sword to the empires throat, They didn't have time to organize their forces properly so they accepted the white gold concordat, Elewsyr and valenwood are both allied with the dominion in a sense, So it'd make sense for them to rally their forces and THEN Hit the dominion where it hurts. But with ulfric starting a rebellion... They had to send forces to skyrim to combat the more immediate threat of skyrim falling out of imperial control.
So in conclusion, For the empire!