I don't recall the Thalmor attacking Morrowind heavily. Valenwood, Black Marsh and Eleswyr left on their own after Thalmor-backed coups tore them from the empire (...Just like in Skyrim if the Stormcloaks win. Read that Ulfric dossier.). And the Empire did help Hammerfell. Do you really think they could have resisted the Thalmor without all those "discharged" legionnaires?
I'm pretty sure that Valenwood is part of the Thalmor
