Woah, woah! I'm playing Khajiit, and planning on supporting the Empire; so this is of significant relevance to me. Why would it be better for the Empire not to recover?
Actually, tl'dr - just read this

http://www.gamesas.com/index.php?/topic/1254960-who-exactly-are-the-goodbad-guys/page__view__findpost__p__19130498