Cool in a character/world building way perhaps?
I find it hard to imagine people going "yeah, Dunmer are so cool with their slaves" - I mean I liked the Dunmer, liked the characterful culture, loved being in House Telvanni and thought it would have been neat to be able to really join the Twin Lamps and make a big difference for the slaves (I mostly just settled with killing slavers in their caves), since racism and prejudice is something you can move on from.
Personally I think it is a fine character/world building thing in Skyrim. I think the reason it might stick out more is that not all Nords are like that, even some follows Ulfric comment on it. Indeed for a province that has so long been part of the Empire (which is quite tolerant) it might make racist Stormcloaks seem a touch backwards thinking ( being an insular, suspicious people until an outsider has proven themselves is one thing, a sudden upswing in "This country for Ethnic Group X" is something else).
That's an interesting response. I was not referring to 'slavery', or people saying "yeah the Dunmer are cool with their slavery". "Slavery" and 'racism" are not the same thing, although it has been rolled up into one subject in North America for over a century. Slavery existed in ancient Egypt and Rome. While slaves in those places were undoubtedly treated with racist acts, racism is not slavery and the act of slavery as an act is not necessarily because of racism. Prisoners of war were made slaves, regardless of race, in dozens of cultures. In Rome, one could even sell oneself into slavery for a time, to pay off debts.
But regardless, I did not speak of 'slavery', and that's not the same as 'racism'. The Dunmer "you're not one of us" attitude is racist. Racism isn't just a thought process or act against one particular race or hatred against a race for no reason. The term 'racism' has been concentrated so much by the 21st century that we have lost the meaning as being separate from many other associated social issues. I've even heard "he's racist against my tattoos", and apart from being a funny comment, it's depressing. But enough of real life.
In the game, with such a minor link to the actual cultural mores and sensibilities (or lack thereof) of the nation of Skyrim, the game developers need to use a heavy hand to make differences in characters plain to players. I feel this is why so many players cough up the 'racism' comment. If the way characters acted was subtle, then most players wouldn't ever know the NPCs attitudes or thoughts. They need to be vocal or else the player would be lost and guessing as to what the NPC stood for or against.
It's also interesting to me that nationalism is called 'racism' in the context of the game, but that's another subject
another interesting comment, by Pistolero:
Thalmor aren't racists. They are hardcoe Social Darwinists. They believe the Altmer are better and more civilized than the other races and rightly so - the language, culture, religion of Tamriel are all based on Altmer culture. Furthermore, they handed over the Empire's ass to them on a silver plate, that small island nation.
Actually, from your description, they are not Social Darwinists, they are National Socialists. A fair amount of racism springs from the premise, both in terms of their standpoint about their own race, and how they can justify their actions against other races. Example: the three Justiciars you may sometimes meet on the road. They reveal themselves to be arrogant, assume they are the superior race, and delight in the fact that they can do whatever they want, under law, if you don;t agree with what they think is best or if you reveal yourself to be of a certain group.
I realize that religious overtone makes the example imperfect, but then again hardly any comparison is 100% perfect and the real world example has a religious link as well as the social one. The brass tacks are- superior based on race, and in a position of power to persecute based on that attitude. To me, that is not Darwinism but a brand of fascism built on National Socialism- elvish nazis, in other words.