But Fallout does #1 only with perks and skills instead of races...sometimes it completely changes quests...is it perfect? No. Is it a step in the right direction? Yes. Should Skyrim have done this with races, and skills? Why not?
Race relations concerning the PC have never been dealt with well in TES games. The problem with allowing you to choose from multiple races is that you have to either
1) make highly detailed interactions for each individual race, severely hindering other aspects of the game or
2) make generic interactions that can be blanketed across all races and increase other aspects of the world.
Now, Beth went with #2 because they wanted to make the world a deeper experience. It was expected that the player would become the hero fairly early on and therefore would get special treatment, especially when the dragons attack near or in towns and the citizens and guards alike see you absorb the soul, confirming you are the Dragon Born of the tales of old. As much as it would have been a great thing for them to add in racism for the PC its would have hindered world development IMO. You, as the PC, are sufficiently badass enough to earn the respect of the people of Skyrim. Your brethren however, don't put in the effort to become respected, This seems to be especially true of the Dunmer in Windhelm.
But Fallout does #1 only with perks and skills instead of races...sometimes it completely changes quests...is it perfect? No. Is it a step in the right direction? Yes. Should Skyrim have done this with races, and skills? Why not?
Edit:
And your dragon born reasoning would be perfect....except npcs don't react to that much either. People treat you like dirt. Stupid, ignorant, incompetant dirt half the time. You don't even think people know you're dragonborn