But when I read the story of my wood elf and what racial abilities the race grants, it clearly states that the wood elf is the finest archer of all Tamriel? But is that just lore conjectured, or is it evident in game? Like +5% bow dmg. or something?
I think it's just the beginning stats. They're +5 or +10 with a bow (something like that). So all it really means is that you get a headstart on archery. But if your character begins with a low archery, say 15, it's okay. Join the Companions, make a little money and have Aela train you 10 times over two levels. In essence, that's the only difference: two levels worth of training--at most.
It's good in some ways, a little deflating in others. It's good in that if you get to level 30 and are getting bored with magic-using, you can switch up and begin training in archery, thievery, etc. And with enough amount of time, you can become deadly efficient in your newly chosen skills. But it's kind of a drag in that in the end, there really are no advantages or disadvantages to any race. The differences are completely superficial.
But if each race had very strict parameters and limitations people would complain about the lack of freedom in the game. As it stands now there's people who complain about there being too much freedom in the game. Take your pick.
As to the OP. All my characters are selfish pragmatists. If it furthers the bank account, that's what they do until money becomes a non-issue. Then they do whatever strikes them as interesting. I suspect that's a semi-tragic metaphor for life.